AUD/USD Forecast: At its lowest in over a decade

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6677

RBA comfortable with current rates, policymakers in no rush to act.
China to release money data and January CPI this Monday.
AUD/USD set to extend its decline once below 0.6660.

The AUD/USD pair fell to 0.6661 on Friday, its lowest since 2009, to close the week a few pips above this last. The RBA released the Minutes of the latest monetary policy meeting, and the key takeaway was that the central bank is in no rush to cut rates further. Nevertheless, a rate hike is also out of the table, as economic growth has been downwardly revised to 1.9% for the year to June, from a previous estimate of 2.6%. Policymakers believe that growth would accelerate to 2.7% by the end of this year.

Attention will shift to China at the beginning of the week, not only because of the coronavirus outbreak but also because the country will release January inflation figures and money data. The annual CPI is foreseen at 4.9% as the monthly inflation is expected to have increased by 0.8%. Australia won’t release macroeconomic data this Monday.

AUD/USD short-term technical outlook

The daily chart for the AUD/USD pair shows that technical indicators resumed their declines after correcting extreme oversold conditions, while the pair develops far below all of its moving averages, which support a bearish continuation. In the 4-hour chart, technical indicators settled near oversold levels, while the pair accelerated south after failing to surpass its 20 SMA, all of which supports a bearish continuation in the upcoming sessions.

Support levels: 0.6660 0.6630 0.6600

Resistance levels: 0.6700 0.6740 0.6770

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 off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

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.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

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.

Ripple exposed to volatility amid low retail interest, modest fund 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.