{"id":56517,"date":"2023-01-18T16:57:24","date_gmt":"2023-01-18T05:57:24","guid":{"rendered":"https:\/\/icmarkets.eu\/blog\/?p=56517"},"modified":"2023-01-18T16:57:24","modified_gmt":"2023-01-18T05:57:24","slug":"ic-markets-asia-fundamental-forecast-18-january-2023","status":"publish","type":"post","link":"https:\/\/icmarkets.eu\/blog\/fundamental-analysis\/ic-markets-asia-fundamental-forecast-18-january-2023\/","title":{"rendered":"IC Markets Asia Fundamental Forecast | 18 January 2023"},"content":{"rendered":"<p><b>What happened in the US session?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Overnight, As the US returned from the bank holiday, market liquidity and volatility increased with the US Dollar gaining briefly. The equity markets closed slightly lower by -0.20% at the 3,990 price level.\u00c2\u00a0<\/span><\/p>\n<p><b>What does it mean for the Asia Session?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Look for increased volatility on the Japanese Yen with the Bank of Japan due to release its monetary policy statement today.\u00c2\u00a0<\/span><\/p>\n<p><b>The Dollar Index (DXY)\u00c2\u00a0<\/b><\/p>\n<p><b>Key news events today<\/b><\/p>\n<p><span style=\"font-weight: 400;\">USD Core PPI m\/m\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">USD Core Retail Sales m\/m\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">USD PPI m\/m\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">USD Retail Sales m\/m\u00c2\u00a0\u00c2\u00a0<\/span><\/p>\n<p><b>What can we expect from DXY today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Earlier in the trading session yesterday, the DXY broke below the 102 round number support level to trade significantly lower, down to the 101.70 price area. However, the move to the downside was sharply reversed during the US session with the price trading back toward the 102.00 price level. Data for the US Core Retail Sales (Forecast: -0.5% Previous: -0.2%) and Retail Sales (Forecast: -0.8% Previous: -0.6%) is due to be released today and is anticipated to be weaker than previous. This could lead to further weakness in the DXY, with the price likely to reverse strongly from the 102 price area, down to the price area of 101.55, which is also the key support level.\u00c2\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;\">Federal Reserve hiked rates by 50bps taking interest rates to 4.50%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next meeting is on 2 February 2023<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Further rate increases are expected to slow<\/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 Bearish<\/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.\u00c2\u00a0<\/span><\/p>\n<p><b>What can we expect from Gold today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">As Gold reversed from the 1928 resistance level, the price consolidated along the 1910 price level despite the strength of the DXY. If the DXY continues to weaken, Gold could break out of the current consolidation to trade higher, continuing with the current uptrend. However, look for Gold to break above the 1915 price level to signal upside potential, with the next key resistance level at the 1928 level.\u00c2\u00a0<\/span><\/p>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Weak Bullish<\/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.\u00c2\u00a0<\/span><\/p>\n<p><b>What can we expect from AUD today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Overnight, the AUDUSD traded with choppy price action as the currency traded lower to the 0.6930 price level briefly. However, the move lower was sharply retraced, with the AUDUSD rebounding to trade toward the 0.70 price area. Look for the AUDUSD to break above the round number resistance level of 0.70 to indicate a continuation of the uptrend, with the next key resistance level at 0.7140.\u00c2\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 3.10%\u00c2\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Future rate rises will be determined by data, the outlook for inflation, and the labour market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next meeting on 7 February 2023<\/span><\/li>\n<\/ul>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Weak Bullish<\/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.\u00c2\u00a0<\/span><\/p>\n<p><b>What can we expect from NZD today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Yesterday, the NZDUSD broke out of the consolidation and the resistance level of 0.64 and climbed significantly higher. Early in the trading session today, with the DXY indicating a retracement to the downside, the NZDUSD has continued to climb higher and is currently trading at the 0.6445 price level. Look for further upside on the NZDUSD if the DXY continues to weaken, with the next key resistance level at 0.6525.\u00c2\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 4.25%\u00c2\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 is on 21 February 2023<\/span><\/li>\n<\/ul>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Weak Bullish<\/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;\">JPY BoJ Outlook Report<\/span><\/p>\n<p><span style=\"font-weight: 400;\">JPY Monetary Policy Statement\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">JPY BoJ Press Conference\u00c2\u00a0<\/span><\/p>\n<p><b>What can we expect from JPY today?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Overnight, the USDJPY The USDJPY traded briefly higher from the 128.30 price level to reach a high of 129.10. Today, the BoJ is due to release its decision through the monetary policy statement, with markets expecting the BoJ to indicate an adjustment to the current monetary policy. A tightening of the current monetary policy would strengthen the Yen significantly. With the price currently trading at the 128.70 price level, look for further downside potential if the Yen strengthens. If the price breaks below the 128-round number level, the USDJPY could continue to slide to the key support level of 126.00.<\/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 -0.1%\u00c2\u00a0\u00c2\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expands range for 10 year JGB yield fluctuations to 0.5%, rather than the current of 0.25%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next meeting is on 18 January 2023\u00c2\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>Next 24 Hours Bias<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Medium Bullish<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What happened in the US session? Overnight, As the US returned [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":56102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215],"tags":[],"class_list":["post-56517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis"],"_links":{"self":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/56517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/comments?post=56517"}],"version-history":[{"count":1,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/56517\/revisions"}],"predecessor-version":[{"id":56518,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/56517\/revisions\/56518"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media\/56102"}],"wp:attachment":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media?parent=56517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/categories?post=56517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/tags?post=56517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}