AUD/USD shifts the attention to the 0.7060 region – UOB

Pablo Piovano FXStreet

AUD/USD remains under pressure and risks a drop to 0.7060 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We did not anticipate the sharp drop in AUD to 0.7095 during NY session. AUD extended its decline during Asian hours and strong downward momentum suggests further weakness. That said, oversold conditions suggest the major support at 0.7060 could be out of reach. Resistance is at 0.7120 followed by 0.7145.”

Next 1-3 weeks: “We have expected AUD to weaken since Monday (24 Jan, spot at 0.7180). After AUD plummeted to 0.7091, we highlighted on Tuesday (25 Jan, spot at 0.7150) that the rapid drop appears to be overdone but the downside risk remains intact. We added, any weakness is expected to encounter solid support at 0.7090. AUD dropped to 0.7095 during NY session and extended its decline as it took out 0.7090 during Asian hours. Downward momentum has improved and the focus now is at 0.7060. A break of this level could lead to further AUD weakness to 0.7030. On the upside, a break of the ‘strong resistance’ at 0.7180 (level was at 0.7225 yesterday) would indicate that the downside risk has dissipated.”

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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.