AUD/USD rebounds sharply as risk sentiment recovers

Dhwani Mehta FXStreet

The AUD/USD pair caught fresh bid-wave and rebounded sharply higher over the last hour, as the demand for higher-yielding currencies returned amid a recovery in the recovery sentiment, while focus continues to remain on the US presidential debate.

AUD/USD regains 5-DMA and beyond

Currently, the AUD/USD pair trades 0.09% higher at 0.7645, hovering close to fresh session highs posted at 0.7651 last minutes. The Aussie found renewed bids just ahead of 0.76 handle and swung back on the bids amid a major turnaround in risk conditions, as the US presidential debate got underway.

Moreover, stronger Chinese industrial profits data also lifted the sentiment around the major. China’s industrial profits jumped 19.5% y/y in Aug versus +11% last. China is Australia’s top export destination.

Focus will continue to remain on the USD dynamic in wake of the ongoing US election debate, while markets await the US consumer confidence data and Fed speaks due later in the NA session for further impetus.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7691 (Sept 6 high) above which gains could be extended to the next hurdle located at 0.7700/08 (daily R3) and 0.7750 (psychological levels). On the flip side, the immediate support located at 0.7600 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7578 (20-DMA) and below that to 0.7538 (100-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.