AUD/USD holds above 0.6800 handle, lacks any meaningful traction

AUD/USD gains some traction on upbeat domestic data, Chinese inflation figures.
The uptick lacked any strong follow-through amid persistent trade uncertainties.
The focus remains glued to the highly anticipated FOMC monetary policy meeting.

Haresh Menghani FXStreet

The AUD/USD pair seemed struggling to capitalize on its attempted intraday bounce, albeit has still managed to hold with modest gains around the 0.6825 region.

After the early Asian session dip to near one-week lows, the pair managed to regain some positive traction on Tuesday in reaction to upbeat comments by the Reserve Bank of Australia (RBA) Governor Philip Lowe. While speaking at a summit in Sydney, Lowe showed confidence in the central bank’s forecast and anticipated recovery in customer spending.

The uptick got a minor lift following the release of mostly upbeat Aussie data – Housing Price Index for the third quarter and National Australia Bank's (NAB) Business Confidence. This was followed by hotter-than-expected Chinese inflation figures – CPI and PPI print for November – and further underpinned demand for the China-proxy Australian dollar.

Adding to this, a surge in Iron ore futures in China, which rose to their highest level in more than four months on Tuesday, further collaborated towards lending some support to the commodity-linked currency – aussie. However, persistent trade uncertainties, ahead of a looming December 15 tariff deadline, kept a lid on any runaway rally.

Investors also seemed to refrain from placing any aggressive bets, rather preferred to stay on the sidelines ahead of the highly-anticipated FOMC policy meeting. The Fed is scheduled to announce its decision on Wednesday and is expected to maintain status-quo, shifting the focus to updated economic projections and any clues over any further easing in 2020.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6828
Today Daily Change	-0.0003
Today Daily Change %	-0.04
Today daily open	0.6831

Trends
Daily SMA20	0.681
Daily SMA50	0.6814
Daily SMA100	0.681
Daily SMA200	0.6914

Levels
Previous Daily High	0.6839
Previous Daily Low	0.6819
Previous Weekly High	0.6863
Previous Weekly Low	0.6762
Previous Monthly High	0.6929
Previous Monthly Low	0.6754
Daily Fibonacci 38.2%	0.6827
Daily Fibonacci 61.8%	0.6832
Daily Pivot Point S1	0.682
Daily Pivot Point S2	0.681
Daily Pivot Point S3	0.6801
Daily Pivot Point R1	0.684
Daily Pivot Point R2	0.6849
Daily Pivot Point R3	0.6859

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.