AUD/USD: Bears move towards the 0.6425 support – UOB Group

FXStreet Insights Team FXStreet

The Australian Dollar (AUD) could continue to weaken; it is unclear if it has enough momentum to break the significant support at 0.6425, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

AUD is set to test the 0.6425 support

24-HOUR VIEW: “The significant support at 0.6425 is highly unlikely to come under threat. Our expectation for AUD to weaken further last Friday was incorrect, as it rebounded to a high of 0.6547. AUD then pulled back and closed modestly higher at 0.6515 (+0.15%). The underlying tone still seems a tad soft. Today, we expect AUD to edge lower, possibly dropping below last week’s low of 0.6480. The significant support at 0.6425 is highly unlikely to come under threat. Resistance is at 0.6515, followed by 0.6535.”

1-3 WEEKS VIEW: “Our update from last Friday (02 Aug, spot at 0.6490) still stands. As highlighted, while AUD could continue to weaken, it is unclear if it has enough momentum to break the significant support at 0.6425. Overall, only a breach of 0.6550 (no change in ‘strong resistance’ level from last Friday) would mean that the weakness in AUD that started in mid-July has come to an end.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.