Should we keep an eye on the upside potential of the firming Oceania currencies?

Should we keep an eye on the upside potential of the firming Oceania currencies?

23.01.2023

Last weekend, the U.S. dollar strengthened against the yen but came under pressure from Oceania currencies, with the AUD/USD pair rising by approximately 80 pips from 0.6906 to 0.6994.The AUD/USD pair has been following an uptrend that began on October 13 of last year, consistent with Dow Theory, and has recently been rising with support from the 20-day moving average on the daily chart. We will carefully assess whether the Australian dollar will continue to strengthen against the U.S. dollar by monitoring recent price movements.

Among European currencies, the Swiss franc was the weakest, with the CHF/JPY pair trading in a range between 140.061 and 141.552. Although the CHF/JPY has continued its rebound from January 16 on the 4-hour chart, it is important to keep in mind that the downtrend is likely to persist until the pair breaks above the recent high of 142.444 with a solid candle.

Today, at 16:00 CET, the Turkish Consumer Confidence Index will be released, followed by Philippine Industrial Production and Philippine Retail Sales at 18:00,and the Philippine Consumer Price Index at 16:00 European time, followed by the Canadian New Home Price Index at 22:30 U.S. time, the Eurozone Consumer Confidence Index and the U.S. Leading Economic Index at 24:00, the U.S. 6-month Treasury bill auction at 25:30, and remarks by ECB President Lagarde at 26:45. We will carefully monitor the upside potential of the firming Oceania currencies.