Australian dollar flirts with US80c

Andrew Masters FIBO Group

The Australian dollar is on track for its 4th straight day of gains today on the back of US dollar weakness and the continuing strength in commodity prices. The currency is now threatening to break through the US80c mark which it hasn’t seen for a while and the potential to run into stiff resistance remains large

A possible government shutdown in the US after senators couldn’t agree on a deal for illegal immigrants currently in the US has taken its toll on the Greenback and caused a selloff with most major currency benefiting including the Aussie dollar.

Australian commodities continue to power ahead including copper, which is the country’s 2nd biggest and has now risen over 10 percent in the last month.

The Australian share market jumped more than 1 percent overnight which was also an additional factor supporting the Australian dollar.

“The AUD has risen alongside its commodity bloc cousins — the Kiwi and CAD — on the back of what has been a solid day of gains for base metals, particularly copper which is up close to 2% today,” noted AxiTrader’s Greg McKenna

“Throw that in with the performance of the basic materials sector on our ASX 200 with a 1.09% gain and the backdrop remains positive for the Aussie.”

The Unemployment rate and Job participation figures due out on Thursday are going to be critically important for the Australian dollar as a good performance may see the RBA rise interest rates in the next few months and will certainly solidify the Aussie’s gains.

Author

Andrew Masters

FIBO Group

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.