AUD/USD: Potential downside towards 0.65 – Rabobank

FXStreet Team FXStreet

Since the start of this year AUD/USD has dropped over 6%. While the move is currently looking a little over-extended, judging by the current tone of the news-flow the AUD is still vulnerable to further falls over the medium-term, according to analysts at Rabobank.

Key quotes

“As low wage inflation and soft price pressures have been symptomatic of the issues facing RBA policymakers for some time, the fall in the value of the AUD will not be totally unwelcome at the central bank – though the pace of the drop this year may be of some concern.”

“The RBA will meet for its next policy meeting on March 3. Last week the minutes of the February 4 meeting were released. The minutes highlighted that ‘members reviewed the case for a further reduction in the cash rate at the present meeting’, which was taken by the market as a dovish signal.”

“Any sign in next week’s meeting that policy-makers’ concerns regarding coronavirus are escalating will increase the risk of another 25 bps reduction in rates in the coming months. This will increase downside potential for AUD/USD towards 0.65.”

Author

FXStreet Team

FXStreet

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.