AUD/USD jumps to fresh session tops, further beyond mid-0.7200s post-US data

Haresh Menghani FXStreet

• Renewed US-China trade optimism prompts some fresh buying.
• Dismal US economic data adds to the USD weakness and remained supportive.

The AUD/USD pair quickly reversed a mid-European session dip to 0.7225 area and surged to fresh session tops in the last hour.

The latest leg of sudden pickup followed headlines that White House trade adviser Peter Navarro - a famous China hawk, has been excluded from the Xi Jinping-Donald Trump dinner in Buenos Aires on December 1.

Exclusion of a key figure behind the US-China trade war indicated that both sides wanted to make progress on the dispute at the summit and prompted some aggressive short-covering move around the China-proxy Australian Dollar.

The positive momentum was further supported by some renewed US Dollar selling amid easing risk-aversion trade, as depicted by strong gains across European equity markets, and the prevalent positive tone around commodity space, which tends to underpin demand for commodity-linked currencies - like the Aussie.

The USD selling pressure remained unabated after today’s disappointing release of US durable goods orders data and initial weekly jobless claims and kept pushing the pair higher through the early North-American session.

Technical levels to watch

Any subsequent up-move is likely to confront some fresh supply near the 0.7275-80 region, above which the pair seems all set to aim towards surpassing the 0.7300 handle. On the flip side, the 0.7225-20 region now becomes an immediate support to defend, which if broken might turn the pair vulnerable to slide back towards challenging the 0.7200 round figure mark.

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 stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.