AUD/USD recovers early lost ground, flat-lined above 0.7600 mark

AUD/USD staged a goodish bounce amid a modest USD pullback from multi-month tops.
Recovering US equity futures prompted some profit-taking around the safe-haven USD.
The attempted recovery runs the risk of fizzling out rather quickly and remain limited.

Haresh Menghani FXStreet

The AUD/USD pair has recovered around 35-40 pips from daily swing lows and was last seen trading in the neutral territory, near the 0.7620-25 region.

A modest bounce in the US equity futures prompted some profit-taking around the safe-haven US dollar and extended some support to the perceived riskier aussie. This, in turn, was seen as a key factor that assisted the AUD/USD pair to stage a modest bounce from the 0.7585-80 region, just ahead of YTD lows.

The AUD/USD pair, for now, seems to have stalled its recent sharp pullback from monthly tops, around mid-0.7800s, touched in the aftermath of the dovish FOMC statement last week. That said, any meaningful recovery seems elusive amid the underlying bullish sentiment around the USD, supported by the upbeat US economic outlook.

Investors remain optimistic about the prospects for a relatively faster US economic recovery amid the impressive pace of COVID-19 vaccinations and the passage of a massive stimulus package. Moreover, renewed COVID-19 jitters, potential US tax hikes, diplomatic tensions between China and the West might further cap the AUD/USD pair.

Hence, the intraday recovery might still be categorized as a short-covering bounce from oversold conditions on hourly charts and runs the risk of fizzling out rather quickly. Hence, it will be prudent to wait for some strong follow-through buying before confirming that the AUD/USD pair has bottomed out.

Market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders and flash PMI prints for March. Apart from this, Fed Chair Jerome Powell's second day of testimony and the broader market risk sentiment might further contribute to produce some trading opportunities around the AUD/USD pair.

Technical levels to watch

AUD/USD

Overview
Today last price	0.7625
Today Daily Change	0.0016
Today Daily Change %	0.21
Today daily open	0.7609

Trends
Daily SMA20	0.7756
Daily SMA50	0.7739
Daily SMA100	0.7609
Daily SMA200	0.7363

Levels
Previous Daily High	0.775
Previous Daily Low	0.7609
Previous Weekly High	0.785
Previous Weekly Low	0.7698
Previous Monthly High	0.8008
Previous Monthly Low	0.7562
Daily Fibonacci 38.2%	0.7663
Daily Fibonacci 61.8%	0.7696
Daily Pivot Point S1	0.7562
Daily Pivot Point S2	0.7514
Daily Pivot Point S3	0.742
Daily Pivot Point R1	0.7703
Daily Pivot Point R2	0.7797
Daily Pivot Point R3	0.7844

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.