AUD/USD: consolidating at lows, poised to extend decline

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7276

Gold prices falling despite mounting risk aversion, undermine the Aussie.
Wall Street to set the upcoming direction for the AUD/USD pair.

The AUD/USD pair trades at fresh YTD lows, currently at 0.7276 after extending its decline overnight to 0.7262. The persistent risk-averse sentiment leads the way, in the absence of fresh macroeconomic data at the beginning of the week, although dollar's demand moderated after the Central Bank of Turkey announced they will provide all the liquidity needed to local banks, cooling down, at least temporarily, Lira's sell-off. Nevertheless, fear prevails, with equities barely holding above their daily lows, with gold also plummeting despite risk-aversion, weighing on the Aussie.

The pair is technically bearish, although now consolidating, and may resume its slump with Wall Street's opening, particularly if US equities extend their pre-opening slides. In the 4 hours chart, the 20 SMA maintains a strong downward slope far above the current level and below the larger ones, while technical indicators stand pat in oversold territory, giving not many clues on upcoming direction, as an upward corrective movement is not out of the table. The immediate resistance is the 0.7310/20 price zone, were selling interest should appear to maintain the dominant trend in place, while below 0.7250, the negative momentum will likely accelerate.

Support levels: 0.7250 0.7215 0.7290

Resistance levels: 0.7315 0.7340 0.7370

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 extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

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.