AUD/USD Analysis: waiting for the RBA, bearish

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6993

RBA's Monetary Policy Statement to shed some light over when the RBA may cut rates.
US-China trade talks related headlines could also affect the pair during the upcoming session.

The AUD/USD pair trades just below 0.7000 ahead of the Asian opening, having recovered from a daily low of 0.6942 achieved at the beginning of the day. The intraday recovery was triggered by US President Trump comments, who said that a deal with China could be achieved this week, although, at the same time, he said that the US can't have China trying to renegotiate the trade deal and that his team is starting the paperwork on tariffs. Chinese inflation released at the beginning of the day resulted as expected, up by 2.5% YoY in April, having no particular effect on the pair. US-China trade talks will resume at the beginning of Friday, Asian session in Washington. Trump mixed signs have put investors in wait-and-see mode as the market can't figure out if the trade war will come to an end, or escalate in the next 24 hours. In the data front, Australia will release the RBA's Monetary Policy Statement, which could shed some light over when the RBA may cut rates. China will offer minor updates on April money developments.

From a technical point of view, the 4 hours chart shows that the upward potential remains well-limited as it trades below a directionless 20 SMA, while the 100 SMA gains bearish momentum below the 200 SMA, both well above the current level. Technical indicators in the mentioned chart have recovered from oversold levels, maintaining their upward slopes but within negative levels, indicating buyers remain cautious. The pair has bottomed twice around 0.6965 this month, which means that stops below the level should be large, therefore exposing the pair to a larger decline if those are triggered.

Support levels: 0.6965 0.6920 0.6885

Resistance levels: 0.7025 0.7070 0.7105

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.