AUD/JPY bounces to 5-DMA amid moderate risk-aversion

Dhwani Mehta FXStreet

The AUD/JPY cross is flirting with daily tops of 87.08, where 5-DMA intersects, and looks to extend the bounce in early Europe amid persisting risk-off moods.

AUD/JPY awaits Australian Q4 GDP

The AUD/JPY pair advances +0.17% to 87.04, extending recovery from Thursday’s low reached at 86.64. The cross is seen consolidating the Asian recovery over the last hour, as the USD/JPY pair continues to waver in a tight range below 10-DMA.

At the same time, AUD/USD trades little changed ahead of 0.77 handle, in wake of RBA Governor Lowe’s comments delivered today, citing that he would like AUD level lower, although discarded further rate cuts.

Next on tap for the major remains the US new home sales and revised consumer sentiment data due on the cards later today, which may have an influence on the USD price-action, eventually impacting both the AUD and JPY.

Technical Levels

Higher side: 87.62 (daily R2), 88 (round figure)

Lower side: 86.64 (Feb 22 low), 86.07 (50-DMA)

1. R3 87.93
2. R2 87.63
3. R1 87.45
PP 87.15
1. S1 86.96
2. S2 86.66
3. S3 86.47

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.