AUD/USD forecast to keep the 0.7660-0.7800 range – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, AUD/USD should keep the 0.7660-0.7800 side-lined theme unchanged for the time being.

Key Quotes

24-hour view: “Yesterday, we held the view that AUD ‘could edge above 0.7775’. Our expectation did not materialize as AUD registered a high of 0.7765. However, the sharp sell-off in AUD during NY session that sent it to a low of 0.7692 came as a surprise. While the rapid drop appears to be a bit overdone, the weakness in AUD could test 0.7685 first before stabilizing. Resistance is at 0.7730 followed by 0.7755.”

Next 1-3 weeks: “We continue to hold the same view as from Wednesday (21 Apr, spot at 0.7730). As highlighted, the current movement is viewed as the early stages of a consolidation phase and AUD is expected to trade between 0.7660 and 0.7800 for now. While the underlying tone has softened somewhat, it is too early to expect a clear break of 0.7660.”

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 lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.