Asia Forecast: Market Movements as New Trading Week Begins

Get today’s latest Asia fundamental forecast with insights on key currencies, commodities, and expected market movements.

Overview of the US Session

Last Friday, Federal Reserve Governor Christopher Waller delivered a speech at the International Organization for Standardization Technical Committee 68 Financial Services 44th Plenary Meeting in Minneapolis. He focused on payment innovation and technical standards without addressing monetary policy or inflation. Consequently, market reactions were limited. The US Dollar Index (DXY) experienced volatility, initially rising to 104.80 before falling to a low of 104.39 and settling at 104.50 by the session’s end.

Implications for the Asia Session

Due to a nearly empty economic calendar, expectations are subdued trading activity in the Asia session. Market participants may hold off on significant moves, awaiting higher volumes during the US session for potential catalysts.

Currency and Commodity Insights

US Dollar Index (DXY)

Key Events Today:

• FOMC Member Bostic speaks at 12:45 pm GMT.
• FOMC Member Barr speaks at 1:00 pm GMT.

Forecast:

Remarks from Federal Reserve officials Raphael Bostic and Michael Barr at the Financial Markets Conference could influence the dollar’s volatility. Any indication of future monetary policy actions might drive DXY movements later in the day.

Next 24 Hours Bias: Weak Bearish

Gold (XAU)

Key Events Today:

• FOMC Member Bostic speaks at 12:45 pm GMT.
• FOMC Member Barr speaks at 1:00 pm GMT.

Forecast:

Comments from Bostic and Barr could affect the dollar, subsequently impacting gold prices. Should their remarks signal dovish monetary policy, gold might see an uptick due to a weaker dollar.

Next 24 Hours Bias: Weak, Bullish

Asia Forecast: Market Movements as New Trading Week Begins

Australian Dollar (AUD)

Key Events Today: None.

Forecast:

The Australian Dollar, which closed last week at 0.6691, may remain supported in early trading. Key levels to watch include:

• Support: 0.6650
• Resistance: 0.6730

Next 24 Hours Bias: Weak, Bullish

New Zealand Dollar (NZD)

Key Events Today: None.

Forecast:

The New Zealand Dollar, closing at 0.6130 last week, might continue its upward trend. Support and resistance levels are:

• Support: 0.6095
• Resistance: 0.6160

Next 24 Hours Bias: Weak, Bullish

Japanese Yen (JPY)

Key Events Today: None.

Forecast:

USD/JPY, which closed at 155.64 last Friday, is expected to remain stable with a potential slight edge upwards. Important levels include:

• Support: 153.60
• Resistance: 156.50

Next 24 Hours Bias: Medium Bullish

Euro (EUR)

Key Events Today: None.

Forecast:

The Euro, which ended last week at 1.0867, may continue its rise. Key levels to monitor are:

• Support: 1.0810
• Resistance: 1.0900

Next 24 Hours Bias: Weak, Bullish

Swiss Franc (CHF)

Key Events Today: None.

Forecast:

USD/CHF, closing at 0.9080 last week, might see further gains. Watch for:

• Support: 0.8990
• Resistance: 0.9100

Next 24 Hours Bias: Weak, Bullish

British Pound (GBP)

Key Events Today: None.

Forecast:

The Pound, which finished last week at 1.2698, could continue to perform well. Key levels include:

• Support: 1.2640
• Resistance: 1.2750

Next 24 Hours Bias: Weak, Bullish

Canadian Dollar (CAD)

Key Events Today: None.

Forecast:

USD/CAD, which closed at 1.3609 last week, might remain under pressure. Key levels to watch are:

• Support: 1.3590
• Resistance: 1.3650

Next 24 Hours Bias: Weak Bearish

Commodity Outlook: Oil

Key Events Today: None.

Forecast:

After stabilizing last week, crude oil prices may see further support. WTI oil, which closed at $79.37 per barrel last Friday, has key levels at:

• Support: $77.80
• Resistance: $80.00

Next 24 Hours Bias: Weak, Bullish

The Asian trading session will likely be quiet, with minimal economic data scheduled for release. Traders will closely monitor Federal Reserve officials’ speeches for any hints on future monetary policy, which could drive movements in the USD and subsequently impact other currencies and commodities.

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