Daily Market Outlook, March 3, 2023

Daily Market Outlook, March 3, 2023Markets look To Close Out The Week On A Firmer Footing Driven By Fed ‘Pause’ HopeAsian equities followed Wall Street’s positive lead and were mostly higher following on from the positive close stateside, driven by yet another round of optimism regarding the potential for a Fed pause, this time Fed member Bostic was the catalyst for the improvement in risk sentiment. Overnight it appears that signs of a strong growth rebound in China following the lifting of Covid restrictions may be adding to risk appetite. China’s February Caixin services PMI ticked up to 55.0 from 52.9. PMIs in Japan and Australia were also revised up from their preliminary flash releases.This morning’s UK and Eurozone services PMI survey releases for February are final readings, the preliminary flash estimates signalled the first expansion (above 50 level) in UK services activity since August, rising to 53.3 from 48.7, while Eurozone services rose to 53.0, up from 50.8. Both reports indicated that price pressures linked to wage inflation remain elevated. US investors will be eyeing the February ISM services survey release later today. The January increase to 55.2 surprised to the upside, however, the uptick was widely attributed to milder weather leading to increase in activity, the prices index remained buoyant despite retreating from elevated levels over the past 12 months, market watchers anticipate that today’s headline ISM should continue to remain anchored in expansionary territory, nudging up to 55.5 for February. Investors will have one eye on the newswires this afternoon as a bevy of Fed officials are set to make comments with voters Logan and Bowman set to speak along with further remarks from non voters Bostic and Barkin also on deck later, markets will be keen to decipher any further indications from Fed officials around the possibility of a Fed ‘pause’.FX Options Expiration New York CutEUR/USD: 1.0600 (EU2.11B), 1.0500 (EU1.76B), 1.0700 (EU1.45B)    USD/JPY: 123.00 ($1.01B), 135.00 ($795.5M), 128.00 ($793M)    USD/CNY: 6.9000 ($1.32B), 7.0000 ($800M), 6.8750 ($622.5M)    GBP/USD: 1.2065 (GBP644.8M), 1.2000 (GBP542.7M), 1.2520 (GBP468.9M)    AUD/USD: 0.6800 (AUD950.8M), 0.7000 (AUD576.2M), 0.6500 (AUD447.9M)    USD/CAD: 1.3600 ($744.6M), 1.3400 ($669.8M), 1.3550 ($405.5M)    USD/MXN: 19.95 ($300.8M)USD/BRL: 5.0700 ($312M)NZD/USD: 0.6100 (NZD1B), 0.6150 (NZD465M), 0.6785 (NZD324.3M) Overnight News of NoteUSD Eases Toward First Weekly Loss Since Jan As Traders Weigh Fed PathChina Feb Services Activity Jumps Sharply As Demand Recovers- Caixin PMIChina's Yuan More Flexible, Helps Stabilise Economy: C.Bank GovernorChina's Housing Bubble Has Been Curbed: Deputy C.Bank GovernorConsumer Inflation In Japan's Capital City Off 42-Year PeakJapan's Feb Service-Sector Activity Grows At Fastest Rate In 8 MonthsBoJ Watchers See Higher Chance Of June Shift After Ueda HearingsRBA To Lift Rates To 3.60% On March 7, Finish At 3.85% In Q2 - RTRS PollFed's Waller: If Data Stays Hot, Policy Rate Should Go Above 5.1%-5.4%Fed’s Bostic Open To Seeking Higher Rate Peak If Data Stay HotDeluge Of Inflation Data Pushes US Borrowing Costs To 2007 LevelsECB’s Wunsch Sees 4% Rates Possible If Inflation Stays StrongDollar's Renewed Strength Temporary, Weakness Ahead - RTRS PollBitcoin Slides With Wider Crypto Markets Amid Silvergate FalloutJapan’s Key Bond Yield Rises Above 0.5% BoJ Ceiling Once MoreChina Swap Traders Flip To Bet On Higher Rates On Growth ReboundOil Racks Up Weekly Gain As Investors Warm To China’s RecoveryAsian Stocks Set To Snap Four-Week Loss On Dovish Fed CommentsChina Retail Investing Remained Lackluster Amid Reopening RallyiPhone Maker Plans $700 Million India Plant In Shift From China(Sourced from Bloomberg, Reuters and other reliable financial news outlets)Technical & Trade ViewsSP500 Bias: Intraday Bullish Above Bearish Below 4000Primary support is 3885Primary objective is 4384Below 3880 opens 383520 Day VWAP bearish, 5 Day VWAP bullishEURUSD Bias: Intraday Bullish Above Bearish below 1.0680Primary resistance is 1.0805Primary objective is 1.0430Above 1.0860 opens 1.0920 Day VWAP bearish, 5 Day VWAP bullishGBPUSD Bias: Intraday Bullish Above Bearish below 1.2080Primary resistance  is 1.2265Primary objective 1.1785Above 1.2265 opens 1.233720 Day VWAP bearish, 5 Day VWAP bullishUSDJPY Bias: Intraday Bullish above Bearish Below 135.50Primary support  is 133.50Primary objective is 137.26Below 133.40 opens 132.8020 Day VWAP bullish, 5 Day VWAP bullishAUDUSD Bias: Intraday Bullish Above Bearish below .6790Primary resistance is .7030Primary objective is .6635Above .7050 opens .715020 Day VWAP bearish, 5 Day VWAP bearishBTCUSD Intraday Bias: Bullish Above Bearish below 23800Primary support 2100Primary objective is 26700Below 20300 opens 1950020 Day VWAP bullish, 5 Day VWAP bearish