AUD/USD Forecast: Bulls becoming bold post-Powell

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7804

Australia will publish February employment data this Thursday.
US Federal Reserve put the greenback under strong selling pressure.
AUD/USD challenging the 0.7800 level and poised to extend gains.

The AUD/USD pair recovered from a daily low of 0.7698 to top for the day at 0.7809, holding nearby as the US session ends. The early slump occurred ahead of the US Federal Reserve monetary policy announcement, as US government bond yields soared. The pair recovered as Powell & Co. cooled hopes for a sooner rate hike, sending Wall Street north and cooling yields at the same time.

Earlier on the day, Australia published the February Westpac Leading Index, which printed at 0.02% better than the previous -0.1%. The country will publish this Thursday its February employment figures. The country is expected to have added 30K new jobs in the month, while the unemployment rate is foreseen shrinking to 6.3%, despite the participation rate is expected to have increased to 66.2%.

AUD/USD short-term technical outlook

The AUD/USD pair holds near the mentioned daily high and seems poised to extend its advance. In the 4-hour chart, the pair has moved above all of its moving averages, which anyway lack clear directional strength. Technical indicators, however, head north almost vertically within positive levels. Further gains are likely once the pair overcomes 0.7820, the immediate resistance level.

Support levels: 0.7730 0.7690 0.7650

Resistance levels: 0.7820 0.7855 0.7900

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 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.