AUD/USD Forecast: Ready to pierce the 0.6600 threshold

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6618

Australian unemployment rate ticked higher to 5.3% in January.
Australian manufacturing activity seen contracting in February, services output expected to recover.
AUD/USD trading near 0.6609 a fresh multi-year low and at risk of falling further.

The AUD/USD pair trades near 0.6609, a fresh multi-year low achieved this Thursday. Australia released January employment data at the beginning of the day, showing that the country added a total of 13.5K new jobs in January, beating the market’s estimate. Furthermore, the number came as a result of 46.2K new full-time positions, and a decrease in part-time jobs of 32.7K. However, the unemployment rate ticked higher to 5.3%, moving further away from the RBA’s desired level of 4.5%. The pair initially advanced with the data but quickly changed course as investors rushed to price in a more dovish central bank.

This Friday, Australia will publish the February preliminary Commonwealth Bank Manufacturing PMI, seen at 48.9 from 49.6 previously, and the Services PMI, seen bouncing from 50.6 to 52.4.

AUD/USD short-term technical outlook

The AUD/USD pair is closing in the red for a sixth consecutive day and despite extreme intraday readings, at risk of extending its slump. In the 4-hour chart, the pair edged sharply lower after meeting sellers around a bearish 20 SMA, which extends its slide below the larger ones. The Momentum indicator hovers near daily lows, while the RSI keeps heading south despite being at 23.

Support levels: 0.6595 0.6560 0.6525

Resistance levels: 0.6635 0.6670 0.6700

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.