AUD/USD: Bearish momentum on daily chart shows signs of fading – OCBC

FXStreet Insights Team FXStreet

The Australian Dollar (AUD) was a touch firmer this morning amid supported risk sentiments and on comments from RBA’s Hauser. AUD was last at 0.6689, OCBC’s FX analyst Frances Cheung and Christopher Wong note.

Risks skewed to the upside

“Some of the highlights of his recent fireside chat include: inflation is still ‘too high’; was surprised by overall employment growth; labour market outcome in good news story; firms finding it hard to fill vacancies.”

“He also said that RBA is not certain on level of neutral rate but most RBA models should between 3% and 4% neutral rate. He repeated again that RBA rate won’t fall as much or as early as other banks. Remarks were somewhat hawkish and reinforces RBA’s case for standing pat on policy rate for now.”

“Bearish momentum on daily chart shows signs of fading while RSI rose from overbought conditions. Risks skewed to the upside. Next resistance at 0.6780/90 levels (21 DMA), 0.6820 levels. Support at 0.6660.”

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.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold crashes with Japanese Yen as stops likely triggered

Gold is down nearly 1.50% so far in Tuesday’s Asian trading, sitting at a fresh seven-month low as the key $3,950 psychological barrier gave way amid a renewed wave of selling.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.