AUD/USD analysis: bullish case becoming stronger

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7460

AUD/USD settles above a key resistance, now support.
Market players now waiting for NAB's indexes and Chinese inflation.

The AUD/USD pair rose to 0.7483, its highest since June 14th, at the beginning of the day, underpinned by a recovery in base metals and broad dollar's weakness. Nevertheless, and despite soaring equities, the pair trimmed most of its daily gains as the dollar found some market's favor after Wall Street's opening, with the pair ending the day a handful of pips above Friday's close but more relevant, with the 0.7440/50 area holding the downside. There were no macroeconomic releases in Australia that could affect the pair early Monday, but the upcoming Asian session will be more lively, as the country will release the NAB's Business Confidence index for June, expected at 8 from the previous 6, and the NAB's Business Conditions index, also seen improving from 15 to 18. Also, China will offer its June inflation figure, seen up YoY 1.9% from the previous 1.8%. The 4 hours chart for the pair shows that it found some intraday sellers around its 200 SMA, but also that it's holding above a bullish 20 SMA which advances above the 100 SMA, suggesting that buyers are still strong. In the same chart, technical indicators have barely retreated from overbought readings before losing their downward slopes, also indicating that the upside remains favored.

Support levels: 0.7445 0.7400 0.7370

Resistance levels: 0.7490 0.7530 0.7565

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.