AUD/USD: Aussie lower on dovish RBA minutes, US Dollar strength

AUD is on the back foot on dovish RBA minutes.
The focus is now on Wednesday’s Australian wage data.

The AUD/USD is trading around 0.7890, in New York morning session, edging down by almost 0.2% on a broad recovery of the US dollar coupled with dovish minutes from the Reserve Bank of Australia (RBA) released earlier on Tuesday.

The RBA minutes said that rising AUD would impede pickup in the economic growth and inflation. However, the RBA minutes failed to provide any fireworks with the central bank sticking with its neutral tone. As such, AUD had been largely unmoved after the release of minutes with focus shifting on wage price index scheduled for Wednesday.

Wednesday’s wage growth is seen rising 0.5% on QoQ basis.

On the other side, USD was boosted on Tuesday with the US Treasury yields jumping up to 2.93% before the US Treasury auctions later in the day.

Technically, AUDUSD has now immediate support at around 0.7865 and sustaining below that it could further fall to 0.7755 zones. For any recovery, AUDUSD needs to sustain above 0.7950 for a further rally towards 0.7995-0.8055 price area in the days ahead.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.