AUD/USD faces extra side-lined trading short term – UOB

Pablo Piovano FXStreet

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang noted AUD/USD could extend the 0.6600-0.6760 range in the next weeks.

Key Quotes

24-hour view: “We expected ‘further AUD weakness’ yesterday. However, it soared to 0.6749 before dropping back down quickly. The price actions appear to be part of a consolidation phase. In other words, AUD is likely to trade sideways today, expected to be between 0.6635 and 0.6730.”

Next 1-3 weeks: “Yesterday (29 Nov, spot at 0.6655), we highlighted that downward momentum is building and held the view that AUD is likely to trade with a downward bias towards 0.6585. Our view was invalidated quickly as AUD popped above ‘strong resistance’ level of 0.6740 (high of 0.6749) before dropping sharply. The build-up in downward momentum has faded and AUD is likely to consolidate and trade between 0.6600 and 0.6760 for now.”

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.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.