AUD/USD: Likely to trade between 0.6655 and 0.6745 – UOB Group

FXStreet Insights Team FXStreet

Instead of extending its decline, Australian Dollar (AUD) is more likely to range-trade between 0.6670 and 0.6710. In the longer run, the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a range-trading phase

24-HOUR VIEW: "After AUD dropped to 0.6682 last Thursday, we highlighted the following on Friday: 'AUD could retest the 0.6680 level before a recovery can be expected. While a break below 0.6680 is not ruled out, based on the current momentum, any further decline is unlikely to reach 0.6655'. Our assessments were not wrong, as AUD fell briefly to 0.6664 during the NY session before closing at 0.6687 (-0.18%). Downward momentum appears to be fading, and instead of extending its decline, AUD is more likely to range-trade today, probably between 0.6670 and 0.6710."

1-3 WEEKS VIEW: "We highlighted last Friday (09 Jan, spot at 0.6700) that 'the current price movements are likely part of a range-trading phase between 0.6655 and 0.6745'. There is no change in our view. Looking ahead, with the underlying tone softening, the risk of AUD breaking below 0.6650 before 0.6745 appears higher."

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.

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 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 picks pace, flirts with $5,000

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and pushing higher towards the key $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.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

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.