AUD/USD: Expected to trade in a range between 0.6300 and 0.6350 – UOB Group

FXStreet Insights Team FXStreet

Australian Dollar (AUD) is expected to trade in a range between 0.6300 and 0.6350 vs US Dollar (USD). In the longer run, rapid increase in momentum suggests AUD could recover, potentially reaching 0.6410, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Rapid increase in momentum suggests AUD can recover

24-HOUR VIEW: "Yesterday, we expected AUD to 'continue to strengthen.' However, we held the view that it 'it does not seem to have enough momentum to reach 0.6410'. We pointed out, 'there is another resistance at 0.6370.' During the NY session, AUD rose briefly to 0.6364 before easing to close largely flat at 0.6332 (-0.05%). The brief advance did not result in any increase in momentum, and we expect range trading today, likely between 0.6300 and 0.6350."

1-3 WEEKS VIEW: "We revised our view from negative to positive yesterday (06 Mar, spot at 0.6330). We highlighted that the strong advance from two days ago 'has resulted in a rapid increase in momentum,' and AUD 'could recover, potentially reaching 0.6410.' Our view remains unchanged. To sustain the momentum, AUD must hold above 0.6265 (‘strong support’ level was at 0.6235 yesterday)."

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.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.