AUD/USD in 2-day highs near the 0.6100 barrier

AUD/USD trades in 2-day highs just below the 0.61 mark.
Broad-based risk appetite sustains the AUD momentum.
RBA is expected to keep rates on hold on Tuesday.

Pablo Piovano FXStreet

The better mood in the risk complex and the recent move from the PBoC on rates have been bolstering the renewed and strong upside bias in AUD/USD to the boundaries of the 0.6100 mark.

AUD/USD run out of steam below 0.6100

The Aussie dollar has started the week on a positive footing, leaving behind four consecutive sessions with losses and resuming the upside to the vicinity of the key barrier at 0.6100 the figure, or 2-day peaks.

AUD has regained the smile on Monday after the PBoC reduced once again the RRR, injecting extra stimulus into the system in order to help the economy to recover from the impact of the COVID-19.

In addition, the generalized upbeat mood surrounding the riskier assets is lending extra legs to AUD, which is now targeting last week’s tops above 0.6200 the figure despite the firm demand for the greenback.

Later in the week, the RBA is seen leaving the overnight cash rate (OCR) unchanged at 0.25% at Tuesday’s monetary policy meeting. Further data releases this week include Trade Balance figures (also on Tuesday), Home Loans (Wednesday) and the RBA’s Financial Stability Review (FSR) (Thursday).

AUD/USD levels to watch

At the moment the pair is gaining 1.39% at 0.6073 and a breakout of 0.6085 (high Apr.6) would aim for 0.6213 (high Mar.31) and finally 0.6458 (55-day SMA). On the downside, the initial support lines up at 0.5980 (weekly low Apr.3) seconded by 0.5506 (2020 low Mar.19) and then 0.5402 (monthly low Oct. 2002).

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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.