Pivot Points Re-Engineered Recap

AUD/USD holds higher ground above 0.7000 in Asian trading on Wednesday, supported by the upside surprise in the Chinese RatingDog Services PMI data for January.  The Aussie preserves the hawkish RBA-inspired gains, with further upside likely capped by a slight deterioration in risk sentiment.

USD/JPY trades with a positive bias for the fourth straight day on Wednesday and looks to build on a one-week-old uptrend above 156.00. Concerns about Japan's fiscal health and political uncertainty counter hawkish BoJ expectations, undermining the Japanese Yen ahead of the February 8 snap election, while boosting the pair. However, a softer risk tone could limit losses for the safe-haven JPY and cap the pair amid subdued US Dollar price action.

Gold builds on the recovery from four-week lows beyond $5,000 early Wednesday. The US Dollar struggles for traction amid data delay and uncertainty over the Fed’s rate outlook under Warsh. Gold recaptures 21-day SMA. while RSI holds firmly above the midline on the daily chart.

World Liberty Financial, Cosmos, and Jupiter posted a mild recovery on Tuesday, defying the broader cryptocurrency market-wide sell-off. However, the technical outlook for WLFI and ATOM remains mixed as short-term recovery challenges the prevailing bearish momentum.

The risk recovery is on pause as we move through Tuesday. After signs that a recovery in precious metals could boost overall risk appetite earlier today, a nasty sell off in tech stocks has pushed the Nasdaq and the S&P 500 down by 1.7% and 1.1% respectively.

The Reserve Bank of Australia (RBA) raised its interest rate by 25 basis points to 3.85%, aligning with market expectations. The RBA's hawkish tone indicates that inflation pressures are likely to persist, suggesting further policy tightening may be on the horizon.