AUD/USD bounces off to 0.6755 as risk sentiment improves

AUD/USD benefits from the shift in market attention amid trade-positive headlines.
Trump’s press conference, UNGA favored risk-on amid a lack of major data/events.

Anil Panchal FXStreet

With the latest trade/political headlines shifting market attention from the US Dollar (USD) strength to trade-positive catalysts, the AUD/USD pair recovers to 0.6755 during early Asian session on Thursday.

Not only the US President Donald Trump’s comments signaling the trade deal with China during his latest press conference but headlines from the United Nations General Assembly (UNGA), by Japan, also favored markets’ risk sentiment.

Adding to the pullback could be the greenback’s profit-booking wave following heavy upside on Wednesday. Doubts over the future of President Trump as the US leader also seem to contribute to the USD’s recent declines.

Portraying the moves, the US 10-year Treasury yields stay positive while S&P500 Futures also refrains from declines.

Moving on, trade/political headlines, the US Gross Domestic Product (GDP) and comments from the Federal Reserve Bank of St. Louis President James Bullard and the Federal Reserve Governor Richard Clarida are likely key catalysts to watch during the rest of the day.

While no change is expected in the annualized 2.0% figure of the US Final GDP for Q2, Fedspeak will be closely observed to foresee the US Federal Reserve’s next move. Further, Aussie buyers might prefer being on the sideline ahead of the next week’s Reserve Bank of Australia (RBA) meeting after latest comments from the Governor increases the odds of another rate cut from the Australian central bank.

Technical Analysis

Pair’s repeated failures to decline below 0.6735 support including lows marked on August 14 and 23, pair’s another uptick to 0.6805/10 area including 10-day simple moving average (SMA) can’t be denied. In a case prices slip below 0.6735, 0.6700 and August month bottom surrounding 0.6675 could lure bears.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD consolidates gains, holds above 1.3600

GBP/USD stays in a consolidation phase above 1.3600 on Monday following the previous week's impressive rally. The US Dollar recovers ground due to uncertainty over the potential impact of US economic sanctions' against Iran on energy prices, leaving the risk-sensitive pair on the backfoot.

EUR/USD stays below 1.1700 as markets turn cautious

EUR/USD stays on the back foot and trades below 1.1700 after posting strong gains in the previous week. The pair struggles as the US Dollar attempts a tepid recovery following last week's sell-off that was triggered by the US Treasury's change to bond buyback plan. Meanwhile, investors cling to a cautious stance, awaiting this week's key events and details surrounding the US' economic sanctions package against Iran.

Gold extends rally to fresh three-month high above $4,650

Gold (XAU/USD) extends its advance on Monday, building on the strong rally seen last week following the US Treasury’s buyback announcement and trading at its highest level since May near $4,650.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

The week ahead: Jackson Hole and Nvidia results to take focus away from Trump

We start the week with the focus squarely on the US. Rising Treasury yields, the Jackson Hole Symposium, inflation and GDP data, along with tariff risks, will dominate market action in the coming days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.