AUD/USD: Rangebound within 0.6775/0.6825– UOB Group

FXStreet Insights Team FXStreet

The Australian Dollar (AUD) is expected to trade in a sideways range of 0.6775/0.6825. In the longer run, there is still room for AUD to rise further, but there may not be enough momentum for it to challenge 0.6870, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

AUD may try to challenge 0.6870

24-HOUR VIEW: “AUD traded between 0.6784 and 0.6829 last Friday, narrower than our expected sideways trading range of 0.6780/0.6840. There has been no increase in either upward or downward momentum, and we continue to expect AUD to trade sideways. Expected range for today: 0.6775/0.6825.”

1-3 WEEKS VIEW: “We continue to hold the same view as last Friday (20 Sep, spot at 0.6800). As highlighted, while there is still room for AUD to continue to rise, it may not have enough momentum to challenge to significant resistance at 0.6870. On the downside, a breach of 0.6740 (no change in ‘strong support’ level) would mean that the upward pressure that started early last week has eased.”

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 breaks below 0.7000 ahead of inflation data

AUD/USD has accelerated its downward trend on Tuesday, breaching below the key 0.7000 yardstick ahead of the opening bell in Asia on Wednesday. Indeed, spot has retreated for the second day in a row despite the hawkish hike by the RBA early on Tuesday and in response to the continuation of the move higher in the Greenback. Looking ahead, all the attention will be on the release of Australia’s inflation data on Wednesday.

USD/JPY consolidates near 157.50 as a bullish USD counters intervention risks

USD/JPY struggles to capitalize on the overnight bounce from a one-week low, consolidating around 157.50 in the Asian session on Tuesday. Trump's concerns about the Japanese Yen's weakness fueled speculation about another US-Japan joint intervention. This, along with the hawkish BoJ, underpins the JPY and caps the currency pair. Meanwhile, rising Fed rate-hike bets and oil-driven inflation fears continue to push US bond yields to multi-year highs, keeping the US Dollar pinned near a two-month high and supporting the pair.

Gold trims gains; back toward $4,150

Gold now surrenders some of its initial advance and retests the $4,150 zone per troy ounce on Tuesday. Meanwhile, the move higher in the yellow metal comes despite the firmer US Dollar and rising US Treasury yields across the board, while escalating geopolitical tensions appear to limit the downside potential.

Ethereum sees profit-taking near $2,700 ahead of key US economic data

Ethereum (ETH) has shown signs of profit-taking near $2,700 over the past few days, with rising exchange deposits and a slowdown in exchange-traded fund (ETF) inflows ahead of US inflation and labor market data releases. The top altcoin's Exchange Reserves, which track the total amount of a crypto asset held across exchange wallets, have increased by roughly 125K ETH since Friday.

Silver is more volatile than Gold ahead of PCE and NFP. This chart shows the positioning gap

The market’s attention is focused on American data this week, but there’s something only those with a trained eye may be looking at: Gold and Silver positioning gap. Financial markets are moving on fears, mostly related to persistently high energy prices driven by the Middle East war. Sure, the US Dollar (USD) is strong, but at what cost?