AUD/CNY: The case for a return to the 5.04/08 area – Westpac

FXStreet Insights Team FXStreet

The aussie has underperformed most of the G10 in recent weeks and also the Chinese yuan, slipping from 5.05 to the 4.90 area, reaching lows since early February. In order to see the AUD/CNY pair at 5.04/08, the aussie should take advantage of the expected USD weakness, according to economists at Westpac.

Further yuan appreciation in H2 21

“To recover to our AUD/CNY 5.04-5.08 projections in H2 we will need to see a resumption of substantial broad USD decline, with AUD playing its usual role of outperforming amid USD depreciation.”

“Commodity prices should also help Australia maintain its own historically strong trade surpluses in coming months.”

“With the China 10 year bond yield 3.13% while the Fed maintains QE, portfolio flows also reinforce our forecast for USD/CNY to 6.30 Q3 and 6.20 year-end.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.