AUD/USD Analysis: China prevents the Aussie from appreciating

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7130

RBA Lowe more concerned about slow wages' growth rather than falling housing prices.
Risk skewed to the downside, bearish case to lose base only if the price surpasses 0.7250.

The AUD/USD pair seesawed between gains and losses but closed the week unchanged around 0.7130, as positive local data was overshadowed by Chinese news indicating the country has capped coal imports from Australia. The pair advanced Friday as the dollar was out of market's favor, while equities recovered, providing a positive clue to the Aussie. RBA's Governor Lowe testified before a special Committee in the House of Representatives last Friday, saying that weak wages rises poised a higher risk to the economy than falling house prices, indicating that this last is an adjustment after rapidly growing prices a decade ago. The latest employment-related data, however, was quite encouraging, as falling underutilization improves prospects of faster wages' growth in the near term. The Australian and Chinese macroeconomic calendars will be quite scarce this week, leaving the Aussie in the hands of sentiment.

The upside potential for the pair is limited, as, in the daily chart, the 20 and 100 DMA capped advances these last few days, converging around 0.7160, with the pair unable to settle above it. Technical indicators in the mentioned chart bounced modestly but remain within negative levels. In the 4 hours chart, the risk is skewed to the downside, as sellers rejected the latest advance around a bearish 100 SMA, while technical indicators gyrated south, the Momentum retreating from its 100 level and the RSI currently in neutral territory.

Support levels: 0.7105 0.7070 0.7035

Resistance levels: 0.7144 0.7190 0.7235

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 clings to daily gains above 1.1800

EUR/USD keeps the fresh bid bias around the 1.1800 region as the NA session draws to a close on Tuesday. The pair’s decent bounce comes on the back of fresh downside pressure on the US Dollar as investors continue to fade the so-called “Warsh trade”. Next of note on the euro docket will be the preliminary inflation data in the euro zone on Wednesday.

GBP/USD consolidates gains below 1.3700

GBP/USD is trying to claw back some of the ground lost over the past couple of sessions, posting decent gains around the 1.3670 region on Tuesday. Cable’s bounce comes as the Greenback eases modestly, while attention now turns to the BoE’s event on Thursday.

Gold nears $5,000 on lingering political woes

Gold staged a strong rebound on Tuesday, snapping a three-day slide and turning its attention back to the key $5,000 mark per troy ounce. The move appears to be driven by bargain-hunting, helped along by renewed selling pressure on the US Dollar and a mixed tone in US Treasury yields.

Crypto winter began in January 2025, but end is near: Bitwise

The crypto market has been in a "full-blown" winter season since January 2025, following a 39% and 53% drop in Bitcoin (BTC) and Ethereum (ETH) prices from their all-time highs over the past few months, according to Bitwise Chief Investment Officer Matt Hougan.

Japan’s snap elections: The fiscal credibility test and the market playbook

Japan has opted for a snap election on 8 February 2026 rather than waiting for the normal electoral calendar, which makes this a faster, higher-stakes reset of political mandate.

Ripple slides as low retail, institutional demand weigh

Ripple edges lower, trading marginally below $1.60 at the time of writing on Tuesday as bulls and bears battle for control. The cross-border remittance token rose to $1.66 on Monday, but profit-taking and risk-off sentiment in the broader crypto market led to the ongoing correction.