AUD/USD: consolidative phase extends, upward favored

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7772

Mixed Chinese data and positive RBA Minutes kept the Aussie on-hold.
Strong equities and soft commodities sending mixed signals.

The Aussie was little affected by big macroeconomic news released overnight, trading against the greenback in a limited range just below the 0.7800 figure. China released several market-mover headlines, which were only enough to send the pair lower some 20 pips, a movement that was quickly reverted by buyers. China reported that annual growth, during the first quarter of this year was of 6.8%, beating market's forecast of 6.7%, and matching the last figure of the last quarter of 2017. Retail Sales were up in February by 10.1%, beating market's expectations of 9.9% although in the same month, Industrial Production grew by less-than-expected, up 6.0% vs. the expected 6.2%. The RBA released the Minutes of its latest meeting, as usual, with few surprises but generally positive, stating that the next move will likely be up, although that won't occur in the near term.

The pair retreats ahead of the US opening, as disappointing macroeconomic readings from Europe and the UK hurt demand for high-yielding currencies, but for the AUD/USD pair, the decline is well limited. Socks are up, but commodities are down, providing mixed signals for it, although the downward potential seems well limited as long as the pair holds above the 0.7740 level.

Short term, and according to the 4 hours chart, the pair is neutral, as its hovering around a marginally bullish 20 SMA, while technical indicators lack clear directional strength and hold around their mid-lines. The mentioned 0.7740 level is a major Fibonacci support, and buyers seem determinate to defend it. The pair will regain its bullish strength on a break above 0.7820, the next Fibonacci resistance.

Support levels: 0.7740 0.7700 0.7665

Resistance levels: 0.7785 0.7820 0.7845

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.