AUD/USD: Australian dollar soared on dollar's slump

AUD soared on broad weakness in USD after muted retail sales.
Higher commodities are also helping AUD today.
Focus now on AU job report.

AUD/USD is now trading around 0.7910, in the New York session, after soaring by almost 0.65% on a plunge in greenback amid muted retail sales and subsequent GDP downgrade. AUD is also being helped by upbeat commodities prices, on a lower USD.

Although, US CPI today print was upbeat, retail sales came subdued. As a result, Atlanta Fed has lowered their Q1 GDP projections to 3.2% from 4% earlier, on weak consumer spending or private consumptions.

Apart from Atlanta Fed, several other investment banks such as Morgan Stanley, JP Morgan, BAML, Barclays had lowered their GDP projections to around 2.5% from around 3% before.

AUD is also being boosted by prospects of a blockbuster AU job report tomorrow with an estimate of 15.3k against 34.7k prior. Full time employment and wage growth may be also in focus.

Technical View:

Price action suggests that AUDUSD now has good support around 0.7750 and sustaining above 0.7947, it may further rally towards 0.7991-0.8055 and 0.8083-0.8136.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.