AUD/USD analysis: closer to 0.7040, the year low

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7084

Aussie lower despite positive local news, following Wall Street's lead.
RBA's Assist Gov. Debelle is set to speak in two different events.

The AUD/USD pair fell to its lowest since October 11th against the greenback, settling below the 0.7100 level for the first time since that day. The Australian currency fell despite the Conference Board Leading Economic Index® increased 0.2% in August 2018 to 105.7, after advancing 0.1% in the previous month. Soaring Asian equities did little for the Aussie, as the Yuan eased, dragging the AUD alongside. This Tuesday, the country won't release any relevant data, although RBA's Assist Gov. Debelle is set to speak in two different events, with the second one being the most relevant, as he will participate in a panel discussion titled "FX market changes and the potential impact on correspondent banking" in Sydney, and may refer to monetary policy.

The pair broke below the 23.6% retracement of its October's decline on the back of Wall Street's weakness, entering the Asian session a few pips below the level and with a short-term technical stance according to intraday technical readings. In the 4 hours chart, the pair was unable to advance above its 20 and 100 SMA, both heading lower around the 38.2% retracement of the same decline at around 0.7110, as technical indicators hold near daily lows, the RSI still heading south and the Momentum directionless. The key support from here is 0.7040, the yearly low, with a break below it opening doors for a continued decline toward the 0.6820 price zone.

Support levels: 0.7040 0.7000 0.6960

Resistance levels: 0.7110 0.7145 0.7170

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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

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: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

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.