Powell Speak’s Again

Due to participating in a moderated discussion at the Economic Club of Washington DC, Powell will speak again with a more hawkish tone Expected regarding the last labor Data Which permits FED to raise the rate again in the next meeting.

The United States added 517,000 jobs in January, well more than the average analyst estimate for a 187,000-job rise. The robust increase showed the US economy continues to surge despite rising interest rates, and could convince the Federal Reserve to take a more hawkish stance after it raised interest rates by just 25 basis points on Wednesday

07-02-2023
USD Index
By Tradingview

 

AUD_USD

Sound’s hawkish, Australian dollar climbs as RBA hikes the Aussie was up 0.8% at $0.6938
AUD vs USD, recouping all of an overnight fall but still short of last week’s eight-month peak of $0.7158. The Reserve Bank of Australia by 25 basis points to a decade-high of 3.35%, much as the market expected, but surprised some by saying further “increases” would be necessary and implying more than one more hike.
AUD had a brutish 2022, cratering from near 0.76 at the start of April to 0.62 in October. Stronger-than-expected inflation and retail sales have helped buoy AUD from around 0.67 at the start of last week to within a spitting distance of 0.6950.

07-02-2023
AUD_USD
Chart by: Tradingview

 

XTI_USD (OIL)

Crude prices recovered sharply on Monday after the International Energy Agency reiterated that a recovery in China will drive oil demand to record highs this year, as the country marked a clear pivot away from its strict anti-COVID policies in January.

But economic data released last week painted a somewhat mixed picture of the world’s second-largest economy, as it grapples with rising COVID-19 cases. Still, air and road transport data for January showed a clear improvement in travel demand, potentially heralding a bigger bounce back.

Brent oil futures rosed by 0.3% to $81.61 a barrel, while West Texas Intermediate crude futures rose 0.2% to $74.70 a barrel by 01:50 GMT. Both contracts raised by 1% on Monday.

07-02-2023
GBP_USD
Chart by: Tradingview

 

Gold (XAU_USD)

Gold closed sharply lower on Friday as an unexpectedly robust rise in US employment last month sent the dollar and bond yields soaring on expectations the Federal Reserve will need to continue raising interest rates to slow the economy.
Gold for April delivery was last seen down US$54.20 to US$1,876.60 per ounce.
The United States added 517,000 jobs in January, well more than the average analyst estimate for a 187,000-job rise. The robust increase showed the US economy continues to surge despite rising interest rates, and could convince the Federal Reserve to take a more hawkish stance after it raised interest rates by just 25 basis points on Wednesday, the smallest hike since it began tightening rates to slow inflation.

07-02-2023
Gold (XAU_USD)
Chart by: Tradingview

 

Twitter Version

USD Index
Powell Speak’s Again Due to participating in a moderated discussion at the Economic Club of Washington DC, Powell will speak again with a more hawkish tone Expected

AUD USD

The Reserve Bank of Australia by 25 basis points to a decade-high of 3.35%, much as the market expected, but surprised some by saying further “increases” would be necessary and implying more than one more hike.

Oil

Crude recovered sharply on Monday after the International Energy Agency reiterated that a recovery in China will drive oil demand to record highs this year, as the country marked a clear pivot away from its strict anti-COV19 policies in Jan.

Gold

Gold closed sharply lower on Friday as an unexpectedly robust rise in US employment last month sent the dollar and bond yields soaring on expectations the Federal Reserve will need to continue raising interest rates to slow the economy.