AUD/USD analysis: flirting with 0.8000 despite soft AU CPI

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7996

The AUD/USD pair recovered from a daily low of 0.7877, achieved after the release of Australian quarterly inflation figures, well below market's expectations. Inflation in the three months to June was 0.2% higher, below previous 0.5% while the annual rate came at 1.9% from 2.1% in Q1. Core figures met market's forecast, coming below previous quarter final figures. The news pour cold water on expectations of a rate hike in Australia, as CPI is now below the bottom of the RBA's target range. Anyway, a disappointing Fed's statement sent the pair up to 0.8013, its highest in over two years, with the pair holding around 0.8000 ahead of the Asian opening, and clearly bullish given that in the 4 hours chart, technical indicators have resumed their advances within overbought territory, and following a consolidative stage, while the price accelerated further above a bullish 20 SMA. Despite overbought intraday, the risk remains towards the upside, supported by continued strength in equities and stocks.

Support levels: 0.7905 0.7870 0.7830

Resistance levels: 0.7985 0.8020 0.8050

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.