AUD/USD pulls back to sub-0.6800 area amid fresh trade/political challenges

AUD/USD slips below 0.6800 as trade optimism fades, US politics trigger risk-off.
Traders will be on the lookout for trade/political headlines amid a light economic calendar.

Anil Panchal FXStreet

Given the recent challenges to the trade/political market catalysts, AUD/USD takes a U-turn from the weekly high while flashing 0.6798 as a quote during early Wednesday morning in Asia.

While initial trade-positive statements from the US President Donald Trump and Treasury Secretary Steve Mnuchin pleased Aussie buyers on early Tuesday, comments from China’s central bank governor and the US Dollar (USD) weakness offered additional strength to the pair by the day-end.

The USD had to bear the burden of markets’ risk-off sentiment after the US President Donald Trump’s comments concerning China at the United Nations General Assembly (UNGA). The risk aversion got an additional boost from the calls of an inquiry to impeach President Trump on the basis of influencing Ukrainian politics. Further, downbeat Consumer Confidence numbers, 125.1 versus 134.2 prior (revised), also added to the greenback’s weakness.

As Australian economic calendar fails to offer any key data/events for publishing, investors will keep searching for the trade/political headlines for fresh impulse. It should also be noted that the monetary policy meeting by the trading partner New Zealand’s central bank, the Reserve Bank of New Zealand (RBNZ), can also move the Aussie pair if delivering a surprise action against no rate change expectations of the global market.

On the other hand, the US economic calendar is also silent with August month New Home Sales being the only data up for publishing.

Technical Analysis

The 0.6820/25 region including 10-day simple moving average (SMA) and multiple highs marked during early August seems to restrict pair’s immediate upside towards 0.6900, which in turn highlights 0.6760, 0.6740 and 0.6700 as nearby rest-points to watch during further declines.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.