AUDUSD: Reached a solid resistance

Jim Langlands FX Charts

The Aud saw a steady drift higher on Monday, to reach 0.7747 in early European trade before falling back a little to finish the day at 0.7730 ahead of today’s House Price Index and RBA Minutes.

Technically we have now reached the 0.7740 level that we have previously mentioned as being solid resistance. This may continue to be the case although if the RBA show no concern over the strength of the $Aud in today’s Minutes, we are likely to take this out and then quickly head towards the November high of 0.7777. Beyond this then allows a run towards 0.7800 and eventually to the April 2016 high at 0.7834. On the downside, support will be seen at 0.7700 ahead of the session low of 0.7687, ahead of the 17 March low of 0.7662. Below here looks unlikely in the near term, but further support would arrive at 0.7650 (minor) and at 0.7630. I remain neutral unless we see 0.7740, and in the longer term I think we probably remain in the wide 0.7500/0.7750 range for some time to come.

Economic data highlights will include:

CB Leading Indicator, House Price Index (Q4), RBA Minutes

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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.