AUD/USD remains flat despite China rate cut talk, 50-day MA is capping upside

AUD/USD is trading tentatively with upside capped by key hurdle.
China rate cut talks have failed to put a bid under the AUD.

Omkar Godbole FXStreet Contributor

AUD/USD continues to trade largely unchanged on the day around 0.6965 with the 50-day moving average (MA) capping upside.

MNI’s Barton put out a tweet a few minutes before press time quoting a leading analyst’s view that the People’s Bank of China has room to cut the reserve requirement ratio and may deliver targeted or across the board rate cuts in June or July.

It is worth noting that China is Australia's largest trading partner and Australia is a leading source of resources for China. As a result, a slowdown in China has a negative impact on Australia’s economy and China stimulus talks tend to bode well for the AUD and other commodity currencies.

So far, however, the Australian Dollar has failed to pick up a strong bid, possibly because the investors see a low probability of the US and China reaching a trade deal or temporary truce at the G-20 meeting later this week.

The pair, however, may climb the 50-day moving average, currently at 0.6970 if the US consumer confidence data, due at 14:00 GMT today, prints well below estimates, reinforcing dovish Fed expectations and leading to a broad-based US Dollar sell-off.

Pivot levels

1. R3 0.7022
2. R2 0.6995
3. R1 0.6979
PP 0.6952
1. S1 0.6936
2. S2 0.6909
3. S3 0.6893

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD trims losses, flirts with the 1.1850 zone

EUR/USD is back on the back foot on Wednesday, slipping below the 1.1850 area as the US Dollar picks up some modest traction. The move comes as traders position ahead of a busy run of US data and the release of the FOMC Minutes. Adding to the pullback are reports that the ECB’s Lagarde may step down before completing her term.

GBP/USD flirts with daily highs near 1.3580

GBP/USD manages to set aside two consecutive daily declines and trades with slight gains in the 1.3580 zone on Wednesday. Cable’s uptick comes despite acceptable gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.