AUD/USD Forecast: trapped between USD weakness and nose-diving equities

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7097

Australia's Melbourne Institute consumer inflation expectations' gauge remained at 4.0% in October.
AUD/USD developing a double bottom at 0.7040, neckline of the figure at 0.7130, the weekly high.

The AUD/USD pair fell to 0.7042 late Thursday amid nose-diving equities, recovering from such low, despite the risk-off mood prevailed through the Asian session and extended into the European opening. The Australian Melbourne Institute consumer inflation expectations' gauge remained at 4.0% in October, according to the overnight release, failing to boost the pair, as the bounce from the mentioned low seems more related to technical causes, given that the 0.7040 level is the yearly low. Despite still trading in the red, European indexes are off their daily lows, while base metals are firmly up amid easing US Treasury yields, all of which helps the pair further up, now nearing the 0.7100 figure.

The greenback remains weak in all fronts ahead of the release of US September inflation data, expected to have advanced within familiar levels, up by 0.2% MoM and by 2.4% YoY. Initial Jobless Claims for the week ended October 5 are expected to come at 206K from the previous 207K. The figures, however, have little chances of affecting prices.

The pair could be developing a double bottom at 0.7040 with the neckline of the figure being this week high of 0.7130. The short-term picture leans the risk toward the upside, as the pair recovered above the 23.6% retracement of its latest decline, now the immediate support at 0.7085, while the Momentum indicator bounced from its 100 level, as the RSI consolidates around 52. Struggling with the 0.7100, a more solid advance could be expected on a break above 0.7140, the 50% retracement of the mentioned decline.

Support levels: 0.7085 0.7040 0.7010

Resistance levels: 0.7140 0.7175 0.7200

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.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold rebounds and retargets $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus in attention to the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline amid a marginal retracement in the US Dollar after the release of August inflation print.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.