AUD/USD Forecast: Bouncing from fresh 1-month lows, but still at risk of falling

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7064

The RBA discussed reducing the targets for the cash rate and the 3-year yield towards zero.
Wall Street’s comeback provided support to the pair during US trading hours.
AUD/USD is technically bearish, only holding amid absent demand for the greenback.

The Australian dollar fell on the back of a dovish Reserve Bank of Australia, with AUD/USD hitting a 4-week low of 0.7020. The RBA released the Minutes of its latest meeting, which showed that boar members have continued to consider how additional monetary easing could support jobs and even discussed the possibility of reducing the targets for the cash rate and the 3-year yield towards zero. On a positive note, members noted that the global economy is gradually recovering, although it will remain linked to coronavirus developments.

The pair later recovered from the mentioned low alongside US equities during US trading hours, trimming early losses and trading in the 0.7060 price zone. During the upcoming Asian session, the country will publish the September Westpac Leading Index, previously at 0.48%. It will also publish the preliminary estimate of September Retail Sales, previously at -4%.

AUD/USD short-term technical outlook

The AUD/USD pair is technically bearish, as the 4-hour chart shows that the pair remained below all of its moving averages, with the 20 SMA still below the larger ones. Technical indicators have recovered from their intraday lows, but turned flat within negative levels, indicating limited buying interest, despite the broad dollar’s weakness.

Support levels: 0.7020 0.6980 0.6940

Resistance levels: 0.7100 0.7130 0.7170

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.