AUD/USD holds below 0.74, put bias strongest in 4 months

AUD/USD remains below 0.74, having closed a one-year low of 0.7347 yesterday on trade fears.
AUD/USD risk reversals hit a four-month low, signaling rising demand for the AUD puts.

Omkar Godbole FXStreet Contributor

The corrective rally in AUD/USD from 0.7347 (one-year lows) seems to have run out of steam at 0.7395 in Asia.

As of writing, the spot is trading at 0.7380 and could drop to 0.7327 - 61.8 percent Fibonacci retracement of 2016 low - 2018 high as the 10-year Aussie government bond yield is now yielding 25 basis points less than its US counterpart and the differential could rise further in the AUD-negative manner amid further monetary policy divergence.

Also, the AUD/JPY cross is on the defensive amid rising trade tensions and that could add to bearish around the Aussie dollar. Further, Westpac Leading Index fell 0.2 percent month-on-month in May compared to a 0.2 percent rise seen in April.

Meanwhile, the one-month 25 delta risk reversals fell to -0.95 today - the lowest level since Feb. 20, signaling rising demand or implied volatility premium for the AUD put options (bearish bets).

AUD/USD Technical Levels

Resistance: 0.7421 (5-day moving average), 0.7476 (May 30 low), 0.7508 (10-day moving average).

Support: 0.7347 (previous day's low), 0.7327 (61.8% Fib), 0.73 (psychological support).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bullish	Neutral	Low
4H	Bullish	Neutral	Expanding
1D	Strongly Bearish	Oversold	High
1W	Strongly Bearish	Oversold	Low
Updated Jun 20, 00:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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 seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

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.