{"id":57458,"date":"2022-09-23T15:00:19","date_gmt":"2022-09-23T05:00:19","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=57458"},"modified":"2022-09-23T15:00:19","modified_gmt":"2022-09-23T05:00:19","slug":"ic-markets-asia-fundamental-forecast-23-september-2022","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/ic-markets-asia-fundamental-forecast-23-september-2022\/","title":{"rendered":"IC Markets Asia Fundamental Forecast | 23 September 2022"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><b>What happened in the US session?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The DXY saw significant volatility overnight as price fell towards the 110.30 price level following the BoJ intervention over the Yen. However, the move lower recovered, with the DXY ending the trading day at the 111 price level.\u00a0<\/span><\/p>\n<p><b>What does it mean for the Asia Session?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">With no major news during the Asia session, look for the directional bias of the currencies to be driven by a potential recovery of the DXY.\u00a0<\/span><\/p>\n<p><b>The Dollar Index (DXY)<\/b><\/p>\n<p><b>Key news events today<\/b><\/p>\n<p><span style=\"font-weight: 400;\">USD Flash Services PMI<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><b>What can we expect from DXY today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Federal Reserve hiked rates by 75bps, taking interest rates to 3.25%. This led to the DXY strengthening significantly to reach the 111.40 price level. In addition to the rate hike, Chair Powell commented that \u2018ongoing increases will be appropriate\u2019 and signaled a strong commitment to bringing down inflation despite a slowdown in the economy. These comments added to the overall hawkish sentiment for the DXY.\u00a0 With the Service PMI numbers tonight, we might expect an industry contraction with data less than 50.0 expected to weaken the USD briefly.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Central Bank Notes:<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Federal Reserve hikes rates by 75bps taking interest rates to 3.25%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next meeting on 3 November\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Further rate increases can be anticipated, with rate cuts expected only if Fed Reserve is confident inflation is moving back down to 2%<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Weak Bullish\u00a0<\/span><\/p>\n<p><b>Gold (XAU)<\/b><\/p>\n<p><b>Key news events today<\/b><\/p>\n<p><span style=\"font-weight: 400;\">No major news events.\u00a0<\/span><\/p>\n<p><b>What can we expect from Gold today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Gold surged strongly to the upside, testing the 1680 resistance level as the DXY weakened briefly. However, the move higher was short lived as the resistance level held strong, resulting in Gold ending the trading session at the 1670 price level. Look for Gold to trade lower towards the 1655 support level as the DXY strengthens. Gold is expected to remain between the 1655 and 1680 price range\u00a0\u00a0<\/span><\/p>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Weak Bearish<\/span><\/p>\n<p><b>The Australian Dollar (AUD)<\/b><\/p>\n<p><b>Key news events today<\/b><\/p>\n<p><span style=\"font-weight: 400;\">No major news events.\u00a0<\/span><\/p>\n<p><b>What can we expect from AUD today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The AUDUSD tested the 0.65830 support level and reversed from here. The reversal was because of the pullback of DXY.\u00a0 Anticipate further downside moves on the AUDUSD, with the key support level at 0.6530, especially if the DXY continues to strengthen. However, significant volatility can be expected with the AUDUSD trading lower into the historic low price levels.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Central Bank Notes:<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Further rate hikes are expected but the size will be dependent on upcoming data releases.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Meeting on 4 October 2022<\/span><\/li>\n<\/ul>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Weak Bearish\u00a0<\/span><\/p>\n<p><b>The Kiwi Dollar (NZD)<\/b><\/p>\n<p><b>Key news events today<\/b><\/p>\n<p><span style=\"font-weight: 400;\">No major news events.<\/span><\/p>\n<p><b>What can we expect from NZD today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The NZDUSD currently trades at the 0.5830 price level, the price is dropping back to the level before reversing. With yesterday\u2019s negative trade balance data (-2447M), we could expect the price to drop to the key support level at 0.5810, and the downtrend is still firmly in place, more downside can be anticipated. The next key support level is 0.5600, which was last reached in 2020.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Central Bank Notes:<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash rate stands at 3.00%\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Central bank is likely to continue with the current path of rate adjustment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next meeting on 5 October 2022<\/span><\/li>\n<\/ul>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Medium Bearish\u00a0<\/span><\/p>\n<p><b>The Japanese Yen (JPY)<\/b><\/p>\n<p><b>Key news events today<\/b><\/p>\n<p><span style=\"font-weight: 400;\">No Major News Events<\/span><\/p>\n<p><b>What can we expect from JPY today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Today is a bank holiday for the Bank of Japan. Japanese banks will be closed in observance of Autumnal Equinox Day. Not expecting much movement for the Japanese Yen today in the markets. Yesterday Japan intervened in the forex markets, causing the Yen to slump 540 pips from 145.90 all the way down to 140.30. Look for a brief recovery of the USDJPY, retracing towards the 143 resistance level following the huge intervention movement yesterday.<\/span><\/p>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Weak Bearish\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; What happened in the US session? The DXY saw significant [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":57386,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/57458"}],"collection":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=57458"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/57458\/revisions"}],"predecessor-version":[{"id":57462,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/57458\/revisions\/57462"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media\/57386"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=57458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=57458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=57458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}