AUD/USD analysis: consolidating near yearly lows

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7357

Australian dollar breaths as equities pare bleeding, risk still skewed to the downside.
USD retains its leadership despite soft Q1 GDP final reading.

The AUD/USD pair heads into the Asian opening little changed daily basis, and after extending its yearly decline to 0.7341 at the beginning of the day. The pair remained range bound amid the more stable behavior among equities, and the absence of Australian data, bouncing from the mentioned low as the greenback lost part of its attractive after the downward revision of Q1 GDP. Australia will release some minor figures during the upcoming Asian session, including New Homes Sales for April and Private Sector Credit figures for May. The pair is intrinsically bearish, despite the ongoing short-term consolidative phase, as in the 4 hours chart, it is developing well below a sharply bearish 20 SMA, as the 100 SMA accelerates below the 200 SMA but well above the shorter one, while technical indicators attempt modest recoveries far below their midlines. The unconvincingly attempt to break lower, as it’s the third time the pair bounces from the 0.7340 region, does not suggest an upcoming recovery, neither diminish chances of a downward extension ahead.

Support levels: 0.7345 0.7310 0.7275

Resistance levels: 0.7400 0.7430 0.7470

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.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.