AUD/USD: bullish extension likely for the upcoming sessions

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7824

There was little action during the past Asian session with a holiday in Japan, favoring a greenback modest upward corrective movement, although stronger-than-expected Chinese data maintained the AUD/USD pair near its recent highs. Retail sales in June surprised to the upside, surging by 11.0% in the month from previous 10.7%, while Industrial Production advanced 7.6%. Q2 GDP came in at 6.9%, matching previous quarter buy above the 6.8% expected. The pair met buying interest on a decline towards the 0.7800 level, but remains unable to surpass the 0.7834 high posted last 2016, having stalled its advance the past week just one pip below it. The overall positive tone prevails despite the limited upward momentum seen in the 4 hours chart, as the price remains well above a bullish 20 SMA, whilst the RSI indicator consolidates around 79. Above the mentioned high, the pair has scope to extend its advance towards 0.7910 February 2015 monthly high.

Support levels: 0.7800 0.7760 0.7725

Resistance levels: 0.7835 0.7870 0.7910

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 climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.