AUD/USD Forecast: Under mild-pressure on dollar’s demand

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6860

Australian dollar relatively strong in a risk-averse environment.
China to release the official Manufacturing PMI and Non-Manufacturing PMI for June.
AUD/USD lower in range, could finally give up on a break below 0.6850.

The AUD/USD pair is trading marginally lower daily basis, trading in the 0.6850 price zone as the American session comes to an end. A cautious optimism helped the pair reach a daily high of 0.6890 at the beginning of the day, but the positive mood faded as the day went by. There were no macroeconomic releases from the region that could affect the pair, although reports that China is making progress on a COVID-19 vaccine were behind the early advance. Speculative interest turned into the greenback during the American session, although, as usual, the Aussie remained resilient.

RBA’s Debelle is set to offer a speech during the upcoming session, while Australia will publish May Private Sector Credit. Also, China will publish the NBS Manufacturing PMI and the Non-Manufacturing PMI, both for June.

AUD/USD short-term technical outlook

The AUD/USD pair is offering a neutral-to-bearish stance in the short-term, with the bearish potential limited. In the 4-hour chart, the pair has been unable to advance beyond a mild-bearish 20 SMA, which eases below the 100 SMA. Technical indicators, in the meantime, stand right below their midlines without directional strength. A steeper decline could be expected on a break below 0.6850, the immediate support.

Support levels: 0.6850 0.6810 0.6770

Resistance levels: 0.6890 0.6925 0.6970

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.