AUD/USD and the coronavirus

AUD/USD, H4

The current market is clearly influenced by the sentiment regarding Covid-19. The market could collapse if the number of cases and deaths in the United States increases in the second wave, but is likely to soar again when positive news about Covid-19 vaccine research shows a ray of light. These two issues have continued to plague the market since March 2020 and will remain the theme of commodity and currency movements that are closely related to the current sentiment.

AUDUSD recorded a rise yesterday and continued to strengthen today after the fall on Monday. Positive news on vaccine studies by Moderna and the United States National Institutes of Health reports that the human immune system has been successfully replicated through their experiments and it is expected that 30,000 human trials will be conducted in the near future.

AUDUSD soared in the Asian session by reaching 0.7016. The highest level in July. It is currently declining slightly and is in the key psychological area of 0.7000. The closest resistance level is at 0.7063 which is the highest level after the market fall last March, while the nearest support is currently at 0.6920. The triangular formation (Triangle Pattern) that is formed is also currently being tested at its upper level. MA-50 and MA-200 show an upward movement tendency. While RSI-14 shows momentum is now approaching the overbought zone.

Australia will report its labor data on Thursday. It will be the next catalyst for the movement of the AUDUSD currency pair.

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.