AUD/USD Analysis: current correction could extend down to 0.7100

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7151

Australian Q1 inflation to be out next Wednesday.
Slow start to the week as Australian markets will be closed on Easter Monday.

The AUD/USD pair closed the week with modest losses at 0.7150, retreating from a fresh one-month high of 0.7250 on Thursday on the back of broad dollar's strength. Despite Australian employment data came in better-than-expected, the Aussie fell on the back of the poor performance of Asian and European equities, and encouraging US data that reduced concerns about a possible economic slowdown in the world's largest economy. US equities managed to trim losses in the last active day of the week, which helped to keep the pair within familiar levels. Australia is on a long weekend holiday, with local markets to remain closed this Monday, which anticipates some limited market moves for the upcoming Asian session. Relevant data will be released next Wednesday when the country will unveil Q1 inflation measures.

The AUD/USD pair offers a neutral-to-positive stance, as in the daily chart, it continues trading between directionless moving averages, with the 200 DMA capping the upside at around 0.7200 and the 100 DMA acting as a dynamic support at around 0.7135. Technical indicators retreated within positive levels, now consolidating just above their midlines, a sign that selling interest remains limited. In the 4 hours chart, the pair is below its 20 SMA while above the larger ones, as technical indicators hold within negative ground, suggesting a possible short-term decline toward the 0.7100 price zone.

Support levels: 0.7135 0.7090 0.7055

Resistance levels: 0.7170 0.7205 0.7250

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.