AUD/USD: risk appetite lifts the Aussie

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7598

The positive tone of equities and commodities underpinned the pair.
AUD/USD could extend its advance up to 0.7660, the 61.8% retracement of its latest decline.

Broad risk appetite maintained the Aussie on the winning side during the Asian session, as tensions between China and the US ebbed. The AUD/USD pair traded as high as 0.7604 so far today, holding nearby mid-European morning as the greenback continues giving up ground. There were no macroeconomic releases in Australia that could affect the currency, but the strong pace of equities and commodities was enough to back the AUD. The US has just a minor figure to offer, which means that sentiment will continue leading the way. The country will release its Richmond Fed Manufacturing Index for May, forecasted at 9 from a previous -3. In the meantime, European indexes struggle to remain in the green after a strong opening, while US government bond yields remain steady around Friday's closing levels.

The 4 hours chart for the pair shows that the recovery stalled a few pips below the 50% retracement of the latest weekly slump at 0.7620, also capped by the 200 SMA a handful of pips below it, making of the area a strong resistance that if it gets broken, should result in an extension up to 0.7660, the 61.8% retracement of the mentioned decline. In the mentioned chart, technical indicators remain near overbought levels, with the RSI advancing above its previous weekly high, while the 20 SMA gains bullish traction well below the current level, supporting the bullish case for the pair.

Support levels: 0.7570 0.7530 0.7505

Resistance levels: 0.7620 0.7660 0.7700

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.