Daily Market Report - Tuesday, Mar 07, 2023


Global stocks stay flat while gold prices reversed from the fresh monthly high as markets took a deep breath ahead of Federal Reserve Chair Jerome Powell’s congressional testimony. The overall risk mood is quite tepid as investors wait for Powell’s speech for further clues about the ongoing pace of the U.S. central bank’s rate hikes. Powell is set to speak today at 15:00 GMT, two weeks ahead of the March FOMC meeting.

Federal Reserve policymakers will need to raise interest rates higher and keep them there longer to tackle the higher prices caused by sticky inflation, San Francisco Fed President Mary Daly said Saturday.


Chinese shares traded lower after Beijing has disappointed global financial markets by establishing a relatively low economic growth target for 2023. China set a five per cent GDP growth estimate for the year compared to its 5.5 per cent target. Meanwhile, Wall Street ended higher on Monday as investors still expecting the Federal Reserve to ease up on its aggressive monetary policy tightening later this year.


Crude oil futures were mostly steady so far today after reaching the highest levels in over five weeks. The key data for the oil prices this week will once again be the weekly crude inventory report, movement of the US dollar and FED policymaker's comments.


In the currency market, the EURUSD slightly reversed from the recent highs following the release of better-than-expected German Factory orders data. Factory orders in Germany increased 1% in January, beating market forecasts of a 0.9% fall. On the other hand, the Australian dollar remains one of the weakest currency pairs of this week, and the AUDUSD extend the slide during the European session after the RBA decision.


The safe-haven metal hovers near the daily session lows. As of this writing, the precious metal trades are below $1846. The expected trading range for gold today is between 1830 support and 1865 resistance. Moving ahead to the North American session, the gold investors should closely monitor the comments from the FED chair Powell.

Economic Outlook

On the data front, the Reserve Bank has raised interest rates for the 10th straight meeting in a row. The central bank increased the cash rate by 25bps to 3.6% at its March meeting. RBA Governor Philip Lowe said the tighter squeeze remained necessary to push down inflation, signalling that even higher rates will be needed in 2023.

“The board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary,” RBA Governor Philip Lowe said.

Technical Outlook and Review

For today, the key resistance is located above $1.0720, a break above this level will confirm a possible move to 1.0770. On the downside, if the pair loses the 1.0640 handles, then we expect a move of 1.0600 and 1.0570.

The important levels to watch for today: Support- 1.0640 and 1.0600 Resistance- 1.0695 and 1.0720.

GOLD: For today, the first nearest support level is located at 1842. In case it breaks below this level, it will head towards the next support level which is located near 1835 then 1830. On the upper side, 1855 will act as an immediate and strong hurdle while 1860 will be a critical resistance zone.

The important levels to watch for today: Support- 1842 and 1835 Resistance- 1855 and 1860.

Quote of the day - “The price of a commodity will never go to zero. When you invest in commodities futures, you are not buying a piece of paper that says you own an intangible of a company that can go bankrupt.” Jim Rogers.
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