AUD/USD bulls regain control, jumps back above mid-0.7600s

Haresh Menghani FXStreet

• USD fails to build on Friday’s attempted up-move.
• Aussie gains an additional boost from MYEFO.
• Additional gains capped by surging US bond yields.

The AUD/USD pair regained some fresh traction on Monday and has now recovered Friday’s retracement slide from over 1-month tops.

The US Dollar received a minor lift on Friday after the long-awaited US tax reform bill moved a step closer to ratification and prompted profit-taking from closer to the very important 200-day SMA barrier.

The USD, however, failed to build on the attempted up-move and helped the pair to catch some fresh bids at the start of a new trading week. The Australian Dollar got an additional boost from today's release of Australia Mid-Year Economic and Fiscal Outlook (MYEFO).

It, however, remains to be seen if bulls are able to maintain their dominant position or the pair once again fails to conquer the 0.7700 barrier amid a goodish pickup in the US Treasury bond yields, which tend to weigh on higher-yielding currencies - like the Aussie.

In absence of any major market moving economic releases, the pair remains at the broader market sentiment surrounding the greenback and the US bond yield dynamics.

Technical levels to watch

A follow-through buying interest beyond 0.7675 level has the potential to lift the pair back towards the 0.7700 supply zone (200-day SMA), above which the up-move could further get extended towards 0.7730 resistance.

On the flip side, retracement back below 0.7640-35 immediate support might prompt some additional profit taking back towards the 0.7600 handle en-route 0.7585-80 support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.