AUD/USD retreats to mid-0.73s as USD starts recovering losses

Political headlines in the U.S. weigh on the greenback on Wednesday.
RBA's Debelle supports accommodative monetary policy.
FOMC August meeting minutes will be eyed next.

Eren Sengezer FXStreet

After advancing to a fresh session high near 0.7370 earlier in the day, the AUD/USD pair lost its traction and was last seen trading at 0.7450, losing 0.27% on the day.

The pair's upsurge during the European trading hours was fueled by the heavy sell-off witnessed on the buck. Following reports of Michael Cohen, US President Trump's former lawyer, pleading guilty to violating campaign finance laws and agreeing to provide information about Russia's involvement in the 2016 presidential election, the US Dollar Index slumped below the 95 mark for the first time since early August. However, ahead of the FOMC meeting minutes, investors refrained from taking large positions and the DXY recovered to 95.15 to cap the pair's gains.

Earlier in the day, the Reserve Bank of Australia (RBA) Assistant Governor Guy Debelle said he expected the inflation to remain around 2.25% for the next couple of years and added that the current accommodative stance of the monetary policy would help them keep the inflation sustained near their target level.

The data from the United States on Wednesday showed that existing home sales in July declined by 0.7% following June's 0.6% contraction and missed the analysts' estimate of 0.6%. Later in the day, the FOMC is going to publish the minutes of its August meeting. “We will look for any discussion of an inflation overshoot, hiking beyond neutral, yield curve dynamics and/or changes to the operational framework for policy,” TD Securities analysts said in a recently published report.

Technical levels to consider

The initial support for the pair aligns at 0.7350 (20-DMA) ahead of 0.7290 (Aug. 20 low) and 0.7225 (Aug. 13 low). On the upside, resistances are located at 0.7375 (50-DMA), 0.7445 (100-DMA) and 0.7500 (psychological level).

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 slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, rises above $5,400

Gold benefits from intense risk-aversion on Monday and climbs above $5,400, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin, Ethereum and Ripple under pressure as key supports face breakdown risk

Bitcoin, Ethereum, and Ripple prices trade on the back foot at the start of this week on Monday, after extending losses in the previous week. BTC is on the brink of a breakdown, ETH is capped below key resistance, and XRP risks a crack of the trendline.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.