AUD/USD recovers above 0.73 on fresh USD weakness

Falling T-bond yields weigh on the greenback on Monday.
US Dollar Index falls to 10-day lows, approaches 96 handle.

Eren Sengezer FXStreet

With developments over the weekend suggesting that the U.S. - China trade conflict is not close to being resolved, the AUD started the week under pressure and the AUD/USD broke below 0.73 to refresh its daily low at 0.7285. However, with the greenback meeting a new selling wave in the NA session, the pair started to retrace its daily fall and was last seen trading at 0.7304, still down 0.38% on a daily basis.

Although there were wasn't a clear catalyst behind the recent USD weakness, falling Treasury bond yields seem to be making it difficult for the buck to find demand. With the 10-year T-bond yield losing 0.25%, the US Dollar Index is down 0.3% on the day at 96.15.

Earlier today, reports suggested that Chinese diplomats were unhappy over the wording of the joint statement that traditionally is released at the end of the annual Asia-Pacific Economic Cooperation (APEC) summit. CNN said that Chinese officials believed they were singled out with the line that reads “We agree to fight protectionism including all unfair trade practices” in the statement.

There won't be any other macroeconomic data releases in the remainder of the day. In the early trading hours of the Asian session on Tuesday, the RBA is going to publish the minutes of its last meeting. Previewing the event, TD Securities analysts argued that it wouldn't be able to move the market "given the 6 Nov policy statement was more than fleshed out in the subsequent Statement on Monetary Policy.”

Technical levels to consider

The pair could face the first technical support at 0.7285 (daily low) ahead of 0.7225 (100-DMA) and 0.7165 (50-DMA). On the upside, resistances are located at 0.7325 (daily high), 0.7360 (Aug. 28 high) and 0.7450 (Aug. 9 high).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.