- AUD/USD formed a Doji candlestick formation after the previous two days of declines.
- Risk sentiment remained mildly positive despite noises surrounding the Middle East.
- The return of the US traders and trade/political headlines will be the key to watch.
AUD/USD failed to stay near Monday’s drop to seven-day low while taking rounds to 0.6875 during early Tuesday morning in Asia. The pair seems to have been struggling between the mixed messages from trade/political front as well as the US-cantered optimism. Investors will keep eyes on Thursday’s Aussie jobs report for fresh impulse after the bushfires.
Geopolitical tension in Libya and Iraq couldn’t defy the market’s risk tone on Monday. The reason could be the longer-lasting impacts of Friday’s upbeat US data as well the International Monetary Fund’s (IMF) projections that risks have become less skewed towards the downside.
Also, news that US President Donald Trump’s lawyers urged the Senate to reject the impeachment charges against the Republican leaders might have played its role to keep the market’s little easy. Furthermore, the global leaders’ push for peace in Iraq and Libya, as well as People’s Bank of China’s (PBOC) no change in Loan Prime Rate (LPR), could have confronted the US dollar bulls.
Recently, news crossed wires that three rockets landed near the US military bases in Iraq but no casualties were reported. Elsewhere, the US-China phase-two deal talks are likely to take place a bit later after China’s Global Times reported that Beijing needs time to consider the impact of the trade deal.
With this, the market’s risk-tone remains mostly directionless awaiting the US traders’ return after Monday’s off.
Although no major data is up for publishing on the economic calendar, markets will keep eyes on the US traders’ reaction to recent trade/political headlines. It’s worth mentioning that this week’s key Aussie even is on Thursday when the Australian Bureau of Statics will release December month employment data. Ahead of that, the Australia and New Zealand Banking Group (ANZ) anticipate the Aussie GDP to remain downbeat while saying, “We think Australia’s trend rate of growth for the coming decade will be somewhere between 2.0% and 2.5% per year. This is lower than the estimates from the RBA and Treasury.”
Technical Analysis
While a lower low formation favors the pair’s grind towards a 16-week-old rising support line, at 0.6825, multiple bottoms surrounding 0.6850 can offer an intermediate halt to the pair’s declines. On the upside, buyers will look for entry beyond a 21-day SMA level of 0.6925.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.