AUD/USD Forecast: Grinding higher without momentum

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7401

Spot gold reached a fresh two-week high of $1,832.62 a troy ounce.
Demand for the aussie remains limited amid local economic woes.
AUD/USD struggles to advance beyond 07400 despite demand for high-yielding assets.

The AUD/USD pair advanced on Thursday amid persistent greenback’s weakness, topping at 0.7413 and finishing the day around the 0.7400 mark. The aussie’s advance was modest, considering the positive tone of equities and soaring metals, usually bullish factors for the Australian currency. Spot gold jumped to $1,832.62 a troy ounce, its highest in two weeks.

Australia published the Q2 Import Price Index, which resulted at 1.9%, improving from 0.2% in Q1, while the Export Price Index in the same period rose to 13.2% from 11.2% in the previous quarter. The country will publish the Q2 Producer Price Index on Friday and June Private Sector Credit.

AUD/USD short-term technical outlook

The AUD/USD pair is neutral-to-bullish in the near-term. The 4-hour chart shows that the pair held above a mildly bullish 20 SMA, although sellers contain advances around a bearish 100 SMA. Technical indicators hover above their midlines, lacking directional strength. Bulls will have better chances if the pair advances above 0.7440, the immediate resistance level.

Support levels: 0.7370 0.7330 0.7290

Resistance levels: 0.7440 0.7475 0.7510

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.