AUD/USD remains bullish, extends post-NFP recovery

Eren Sengezer FXStreet

Following Friday's positive daily closing, the AUD/USD is looking to extend gains for the second day in a row amidst a softer tone in the greenback. At the moment, the AUD/USD is up 0.5% at 0.7580, a tad below its daily high of 0.7589.

RBA to stay on hold

Today, the Australian Treasurer Scott Morrison speaking in a Bloomberg TV interview, argued that the biggest worry about the economy is low wage growth and said that they are working to ease pressure on house prices - spoke with regulators about housing debt.

Already there is talk that the Australian Prudential Regulation Authority (APRA), could lower the threshold for total lending to property investors to 7% year on year from 10 per cent at present, according to Philip Baker, an associate editor at Australian Financial Review. He also adds that If APRA does more on that front, it allows the bank (RBA) to keep the official cash rate low while the inflation rate remains so far below its target rate.

Current Fed view hasn't changed

Although the greenback seems to be under pressure since the NFP numbers on Friday, market expectations for a rate hike on Wednesday haven't changed much. The CME Group FedWatch Tool shows that the March hike probability is at 88.6% at the moment, down from Friday's 93%.

Critical levels

The AUD/USD is facing the first resistance at 0.7600/10 (psychological level/50-DMA), ahead of 0.7620 (20-DMA), and 0.7700 (psychological level/Mar. 1 high). On the downside, the first support is aligned at 0.7515 (Fib. 38.2% of Jan. to late Feb. uptrend) followed by 0.7495 (100-DMA) and finally 0.7450 (Fib. 50%).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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.