AUD/USD: headed through 0.8000?

AUD/USD bears and bulls can't outpace the other.
AUD/USD has room to extend above 0.8000 still.

Ross J Burland FXStreet

AUD/USD was consolidating between 0.7936/75 in NY and is trading in early Asia trading at 0.7960, down -0.03% on the day, having posted a daily high at 0.7964 and low at 0.7956.

AUD/USD was taking advantage of a weak dollar at the start of this week although the upside momentum was halted in late Asia and with Europeans taking the pair down to 0.7938 as Brent fell off a cliff.

Forex today: US traders clean up the mess returning from holidays

Westpac's outlook

Analysts at Westpac explained that AUD/USD should consolidate between 0.7920 and the key 0.7980-00 area in advance of both consumer confidence and Thursday’s employment report.

AUD/USD 1-3 month:

Over the course of Q1 2018, we look for AUD/USD to return to the 0.75 area seen in early Dec 2017. This should occur if interest rate markets move closer to Westpac’s view of no change in the RBA cash rate this year and if the prospect of increased supply cools the recent commodity price rally. But a firmer US dollar is probably necessary to get as far as 0.75 (9 Jan)"

For today, we have the Westpac-MI consumer sentiment in focus.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, a bullish 20 SMA extended its advance below the current level and above the mentioned Fibonacci resistance, while technical indicators hold directionless near overbought readings. "The pair has room to extend its advance on a break above 0.8000 a major psychological burden that once cleared, will probably result in a stronger advance."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.