AUD/USD bounces off lows, still weaker around 0.7600 handle

Haresh Menghani FXStreet

The AUD/USD pair's reversal from Friday's 8-day high extended on Monday and the pair touched a session low of 0.7580 before retracing few pips to currently trading around 0.7590-95 region.

The pair, on Monday, snapped three-days of winning streak and has now reversed part of Friday's strong gains led by upbeat Chinese inflation data. The greenback continues to gain traction as market participants now seemed convinced that the Fed would go ahead and raise interest rate, with the CME group's FedWatch Tool indicating 64% probability of such an action in December.

Moreover, a cautious investor sentiment around equity market is also denting demand for higher-yielding currencies - like Aussie, and exerting selling pressure around the major.

Later during NA trading session, US manufacturing data would provide immediate impetus for short-term traders ahead of RBA Governor Philip Lowe's speech and RBA's latest monetary policy meeting minutes during early Asian session on Tuesday.

Technical levels to watch

Immediate downside support is pegged at 0.7580 (session low) below which the pair seems to accelerate the slide immediately towards 100-day SMA support near 0.7540 region. On the upside, recovery back above 0.7600 handle might now confront resistance near 0.7615 level, which if cleared should now assist the pair to surpass 0.7645-50 horizontal resistance and aim towards 0.7685-90 resistance area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.