AUD/USD is still trading in a range – UOB Group

FXStreet Insights Team FXStreet

The bias for Australian Dollar (AUD) is tilted to the downside toward 0.6475; the major support at 0.6455 is unlikely to come into view. In the longer run, AUD is still trading in a range, probably between 0.6455 and 0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Bias for AUD is tilted to the downside toward 0.6475

24-HOUR VIEW: "We expected AUD to trade in a range between 0.6490 and 0.6530 yesterday. AUD subsequently rose to 0.6424 before dropping to a low of 0.6482. The decline has resulted in a slight increase in downward momentum. Today, the bias for AUD is tilted to the downside toward 0.6475. Based on the current momentum, we do not expect the major support at 0.6455 to come into view. On the upside, if AUD breaks above 0.6520 (minor resistance is at 0.6505), it would indicate that the downside bias has eased."

1-3 WEEKS VIEW: "We continue to hold the same view as last Friday (15 August, spot at 0.6510). As highlighted, AUD is still trading in a range, probably between 0.6455 and 0.6555."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD holds steady near 0.7200 amid escalating US-Iran tensions

AUD/USD consolidates just below its highest level since mid-May, touched on Friday, and hovers around 0.7200 at the start of a new week amid mixed cues. Hawkish RBA expectations continue to act as a tailwind for the Aussie. Meanwhile, the upbeat US NFP report lifted Fed rate hike bets, which, along with escalating US-Iran tensions, underpins the safe-haven US Dollar and caps the currency pair.

USD/JPY hovers around 156.00 as more hawkish BoJ bets cap gains

USD/JPY holds steady above 156.00 on Monday as the US Dollar draws support from escalating US-Iran tensions and rising Fed rate-hike bets, bolstered by Friday's upbeat NFP report. Moreover, concerns over Japan’s fiscal outlook keep the Japanese Yen on the back foot and support the currency pair, though more hawkish BoJ expectations and a suspected intervention cap the upside.

Gold falls below $4,400 as strong US jobs data raise the prospects for Fed rate hike

Gold price tumbles to near $4,395 during the Asian session on Monday. The precious metal extends the decline as robust US employment data boost US Federal Reserve (Fed) rate hike bets. The US Nonfarm Payrolls (NFP) climbed by 162K in August, the US Bureau of Labor Statistics (BLS) revealed on Friday.

The week ahead: Dollar at a crossroads as CPI and ECB take centre stage

With the summer finally over, investors returned with a strong appetite for action. Following last week’s strong performance, the US dollar has taken a back seat so far this week, as oil, the yen and sovereign bond yields monopolized market interest.

CFTC report: Oil rebound offsets broader positioning retreat

The week in one sentence: Speculative positioning became more defensive in the week ending September 1. Yen short positioning recorded the largest deterioration, while Gold length also retreated. Oil buying returned alongside stronger prices, and Canadian Dollar and Euro positioning improved, although Euro flows diverged from weaker spot prices.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.