AUD/USD Forecast: Bulls ready to challenge the 0.6600 figure

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6518

Gold and oil prices soared amid increased demand for China and more stimulus hopes.
Wall Street rallied amid progress related to a coronavirus vaccine.
AUD/USD about to challenge this month high, bullish.

The AUD/USD pair has climbed steadily ever since the day started, to reach a daily high of 0.6518, holding nearby as the US session comes to an end. The Aussie found support in rallying oil prices and gold prices, with the first underpinned by news indicating that Chinese oil demand is almost back to pre-virus levels. Gold, on the other hand, soared to fresh multi-year highs as central bankers continued to hint additional stimulus measures likely in the near future. The substantial rally in US equities resulting in broad dollar’s weakness, maintained the pair rallying in the last trading session of the day. Early Tuesday, the RBA will publish the Minutes of its latest meeting.

AUD/USD short-term technical outlook

The AUD/USD pair is heading towards 0.6569, the high posted in April. The short-term picture supports a continued advance, as, in the 4-hour chart, technical indicators maintain their bullish slopes near overbought readings. Additionally, the pair has settled above all of its moving averages, which head higher with uneven strength. Beyond the mentioned monthly high, the next relevant resistance is the 0.6600 level, with a break above this last opening the doors for a continued advance during the upcoming sessions.

Support levels: 0.6480 0.6455 0.6420

Resistance levels: 0.6530 0.6570 0.6600

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.