AUD/USD seen side-lined between 0.7130-0.7260- UOB

Pablo Piovano FXStreet

AUD/USD is expected to remain within the 0.7130-0.7260 range in the next weeks, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “AUD traded between 0.7150 and 0.7198 yesterday, narrower than our expected sideway-trading range of 0.7140/0.7200. Upward momentum is beginning to pick up as AUD closed on a relatively firm note at 0.7195 (+0.47%). For today, AUD is expected to strengthen but in view of the nascent improvement in momentum, any advance is unlikely to move clearly above 0.7230 (next resistance is at 0.7260). Support is at 0.7170 but only a move below 0.7150 would indicate the current upward pressure has eased.”

Next 1-3 weeks: “Last Thursday (20 Aug, spot at 0.7190), we held the view that AUD is expected to trade sideways within a 0.7100/0.7260 range for a period of time. We detected a slight uptick in downward momentum two days ago and indicated that ‘prospect for AUD to move towards the bottom of the range first is greater’. However, for the last couple of days, AUD traded in a relatively quiet manner (roughly between 0.7150 and 0.7200). The build-up in downward momentum fizzled out quickly and from here, AUD could continue to trade sideways, likely within a 0.7130/0.7260 range (narrowed from 0.7100/0.7260) for a while more.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.