AUD/USD Forecast: Bearish case gathers momentum below 0.7600

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7587

The RBA kept the cash rate on hold, extended its QE program.
Australia will publish the Commonwealth Bank Services PMI for January, expected at 55.8.
AUD/USD trades at its lowest for the year, could extend the slide in the near-term.

The AUD/USD pair surged to 0.7661 early Asia, following the Reserve Bank of Australia’s decision to leave the cash rate on hold at 0.1%. However, the positive tone was short-lived as investors went deeper into the announcement. Australian policymakers have decided to extend the QE program, as the current pace of bond-buying at A$ 5billion per week will continue once the initial deadline expires in April. Also, the central bank repeated that inflation remains weak, as well as business credit growth. The pair fell to 0.7563, its lowest for this 2021.

Early on Wednesday, Australia will publish the Commonwealth Bank Services PMI for January, expected at 55.8. Later into the session, the country will release December Building Permits, while RBA’s Governor Philip Lowe is scheduled to speak.

AUD/USD short-term technical outlook

The AUD/USD pair trades sub-0.7600 and could extend its decline this Wednesday, as the bounce from fresh yearly lows was quite shy. The 4-hour chart shows that the pair keeps developing below a bearish 20 SMA, while technical indicators head south whiting negative levels, favoring another leg lower in the upcoming sessions.

Support levels: 0.7560 0.7520 0.7475

Resistance levels: 0.7605 0.7645 0.7680

View Live Chart for the AUD/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.