AUD/USD Forecast: Short-term progress likely

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6737

Australian Westpac Consumer Confidence improved 2.3% to 95.5 in February.
Demand for high-yielding assets underpinned the Aussie for a second consecutive day.
AUD/USD heading toward a relevant resistance level at 0.6770.

Commodity-linked currencies were the best performers this Thursday, backed by renewed demand for high-yielding assets. The AUD/USD pair traded as high as 0.6749, ending the day a handful of pips below this last. For once, Australian data supported the local currency, as the Westpac Consumer Confidence Index improved in February by 2.3% to 95.5. The index, however, is still down from a year earlier and while below 100, indicated that confidence remains weak. Nevertheless, the rally in global equities and steady gold prices supported the Aussie. This Friday, Australia will publish February Inflation Expectations, foresee at 4.3%, after printing 4.7$ in January.

AUD/USD short-term technical outlook

The short-term picture for AUD/USD is bullish according to the 4-hour chart, although the bullish potential in the long run, seems limited. In the mentioned time-frame, the pair is now above a bullish 20 SMA, capped by a bearish 100 SMA which converges with the mentioned daily high. The RSI indicator is stable at around 60, but the Momentum indicator continues to advance, skewing the risk to the upside. The pair now faces a major resistance level at 0.6770 and needs to surpass it to continue advancing.

Support levels: 0.6700 0.6660 0.6630

Resistance levels: 0.6770 0.6805 0.6840

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 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.