AUD/USD: Current price movements are likely part of a 0.6450/0.6555 – UOB Group

FXStreet Insights Team FXStreet

There is scope for Australian Dollar (AUD) to test 0.6520 before a pullback can be expected. In the longer run, the current price movements are likely part of a 0.6450/0.6555 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum has not increased much

24-HOUR VIEW: "Yesterday, we expected to 'trade in a sideways range of 0.6455/0.6490.' Instead of trading sideways, AUD rose to a high of 0.6509, closing on a firm note at 0.6502 (+0.51%). Despite the advance, upward momentum has not increased much. That said, there is scope for AUD to test 0.6520 before a pullback can be expected. Support is at 0.6485, followed by 0.6470."

1-3 WEEKS VIEW: "We have held a negative AUD stance since early last week. In our most recent narrative from Monday (04 Aug, spot at 0.6465), we highlighted that 'downward momentum is slowing, a breach of 0.6520 would indicate AUD is not breaking below 0.6405.' Yesterday, AUD rose to a high of 0.6509. Although our ‘strong resistance’ at 0.6520 has not been breached yet, downward momentum has faded. The current price movements are likely part of a range trading phase, probably between 0.6450 and 0.6555."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold tests $$4,400 as softer US bond yields cap USD gains

Gold scales higher for the second straight day and continues to hit new weekly highs through the first half of the European session on Friday, with bulls now awaiting a sustained move beyond the $4,400 mark before positioning for further gains. Retreating US Treasury bond yields keep the US Dollar (USD) uptrend capped ahead of Fedspeak and mid-tier US data.

Bitcoin extends recovery, Ethereum eyes $2,500, XRP holds $1.30

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their recovery, trading above $76,700, $2,400 and $1.300, respectively, on Friday. These top three cryptocurrencies now face key technical levels that could determine whether their recoveries extend further or pull back.

Why Bitcoin's over 30% rebound doesn't mean the bear market cycle is done

BTC has staged a strong recovery after falling to a yearly low of $57,800 in July, gaining nearly 33% and recording two consecutive months of gains in July and August. However, despite that rebound, Bitcoin remains around 40% below its all-time high, leaving one key question for traders: is this the start of a new bullish phase, or simply another recovery within a broader bear-market cycle?

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.