AUD/USD could drift towards the 0.7560 area – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, AUD/USD could grind lower to the 0.7560 region in the next weeks.

Key Quotes

24-hour view: “We expected ‘further AUD weakness’ yesterday but we were of the view ‘0.7560 is likely out of reach for now’. We highlighted that ‘0.7595 is already quite a strong level’. While AUD dropped to 0.7592, the subsequent sharp bounce from the low came as a surprise (overnight high of 0.7697). The rapid swings have resulted in a mixed outlook and AUD could trade sideways within a broad 0.7615/0.7700 range today.”

Next 1-3 weeks: “We noted yesterday that ‘shorter-term momentum is beginning to improve but AUD has to close above 0.7820 before a sustained advance can be expected’. However, AUD dropped sharply during NY hours and extended its decline this morning. Risk has shifted quickly to the downside and AUD is likely trade with a downward bias towards 0.7560. On the upside, a break of 0.7730 would indicate the downside risk has dissipated. On a shorter-term note, 0.7700 is already a strong level.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD extends recovery, trades above 1.3200

GBP/USD holds on to modest gains above 1.3200 on Friday, building on gains seen in the previous day. Still, Cable struggles to build on its recovery as cautious market sentiment keeps investors focused on the US-Iran conflict and ongoing volatility in global technology stocks.

EUR/USD pops to daily highs near 1.1420

EUR/USD extends Thursday's recovery and climbs past the 1.1400 yardstick at the end of the week. The pair’s recovery comes as the US Dollar remains on the back foot, while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold advances to two-day highs, targets $4,100

Gold trades in a tight range above $4,000 per troy ounce on Friday, adding to the recent recovery. The precious metal, however, finds it difficult to attract fresh buyers as expectations for a hawkish Fed continue to strengthen.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.