AUD/USD bulls stepping in on the US dollar's stalling, prospects are technically bullish

AUD/USD bears bailing out as price consolidates the down move.
US dollar giving back some ground, could give rise to healthy upside correction in AUD crosses.

Ross J Burland FXStreet

AUD/USD is currently trading at 0.7044 between a narrow start of the day range in Asia of 0.7042 and 0.7048 following an overnight session of corrective behaviour from a low of 0.7015 to 0.772 the high.

August's combination of rising equity prices and a sliding US dollar has been reversed in no uncertain terms, sending the AUD/USD back to late July levels.

However, despite the market chatter about Reserve Bank of Australia cuts next month, AUD/USD is performing the bid in improved risk appetite.

US stocks finished in the green on Thursday and the greenback is starting to find sellers across the board according to the DXY, (see below).

AUD/USD is responding to improved risk sentiment on Wall Street coming off a weak European session.

US equities were in the green as they digested strong US housing data. However, there was a disappointment in the initial jobless claims, and ongoing concerns about a lack of additional fiscal stimulus.

There is now the scope, from a technical basis for recovery, especially if commodities can maintain the bid, for an upside correction.

Oil, copper and the CRB index were marching ahead on dollar weakness. The CRB index was some 0.4% higher overnight.

AUD/USD technical analysis

Bearish long-term outlook

Daily chart

Hourly chart

There is still plenty of work to be done by the bulls at this juncture as the 4-hour charts show heavily bearish conditions still.

DXY bearish for now

The hourly conditions show that the dollar is retesting what was support, now turned resistance structure.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.