AUD/USD analysis: positive momentum to extend short-term

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7115

Aussie boosted by positive US-China trade war news, soaring Wall Street.
AUD/USD gains directly linked to global growth figures, particularly linked to China.

The AUD/USD pair closed the week with solid gains at 0.7115, posting an impressive come back from an almost one decade low of 0.6775. Friday's gains were triggered by positive news related to the US-China trade war, as both economies will resume talks this Monday in Beijing, alongside China's announcement of more stimulus measures coming from the banking sector. The strong US employment report boosted US equities, which also provided support to the Aussie. The extent of the recovery and whether the pair could continue advancing will depend on how trade-talks develop, and more relevant, upcoming Chinese macroeconomic figures, as more signs of economic slowdown, could well result in the pair losing again the 0.7000 threshold. Concerns about a global economic downturn will also play against the commodity-linked currency.

The recovery has been quite impressive, yet in the daily chart, the AUD/USD pair settled right around a bearish 20 DMA, which maintains its downward slope below the larger ones. Technical indicators in the mentioned chart have recovered from oversold readings, maintaining their upward slopes but within negative ground, leaning the risk to the upside without confirming additional gains just yet. Shorter term, and according to the 4 hours chart, the pair seems poised to extend its gains, having settled a couple of pips above its 100 SMA for the first time in a month, while technical indicators continue heading north despite being in overbought territory.

Support levels: 0.7080 0.7045 0.7010

Resistance levels: 0.7140 0.7175 0.7210

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 softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

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.