Aussie dollar goes higher again

Gregory McKenna GO Markets

That's the discussion forex traders are increasingly going to be having in the months ahead as President Donald Trump pushes ahead with his late cycle stimulus and associated borrowing. It's one of the reasons many banks, traders, and investors are still holding a jaundiced view on the outlook for the US dollar.

It's also why the US dollar still can't take out 91 in DXY terms, why the Euro was able to hold 1.22 last week, and why the Aussie dollar managed to hold support also.

Of course in the Aussie's case, in forex markets more broadly, the turn around in stocks is a key part of the flight higher. Risk appetite hardly ever fails to give the Aussie a lift.

That, when combined with the break of the trendline Friday from the start of the decline above 81 cents along with the reinforcement of the important support zone in the 0.7740/60 region has the bulls back in control at the moment in AUDUSD.

As I wrote yesterday, a break of 0.7830 opened up the likelihood of a move toward 0.7893 on the 4-hourly charts.

And with the National Australia Bank (NAB) business survey out today and expected to reinforce the solid business operating environment and outlook right now in Australia there is every chance that the Aussie lifts toward that level.

Whether it confirms or denies the worries which surfaced after the earnings data in the recent US jobs report will set the scene for the US dollar and thus the Aussie.

Author

Gregory McKenna

GO Markets

Greg McKenna has been working in and around financial markets since 1988.

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.