AUD/USD slides as copper hits 13-month low

Comex copper has hit a 13-month low today.
Falling commodity prices could push the AUD/USD below 0.72.

Omkar Godbole FXStreet Contributor

The AUD/USD is fast losing altitude in Asia, courtesy of falling commodity prices.

As of writing, the currency pair is trading at 0.7205, having hit a high of 0.7243 earlier today.

Comex copper has hit a 13-month low of $2.65. Further, gold is reporting a 0.36 percent drop below the psychological mark of $1,200. The drop in the commodity prices is bolstering the already bearish technical setup: bearish pennant breakdown witnessed on the daily chart on August 10.

Meanwhile, data released earlier today showed the consumer confidence in Australia ebbed in August – sinking 2.3 percent to a score of 103.6 – and the second quarter wage price index rose 0.6 percent quarter-on-quarter as expected. The mixed data failed to embolden the Aussie bulls, leaving the currency at the mercy of the commodity prices.

Looking forward, the AUD/USD could drop to 0.7184 (61.8 percent Fibonacci retracement of the rally from the 2001 low to 2011 high) on falling commodity prices. AUD could also take a hit if the Turkish lira resumes the slide.

AUD/USD Technical Levels

Resistance: 0.7243 (session high), 0.7277 (5-day moving average), 0.73 (psychological hurdle)

Support: 0.7184 (61.8 percent Fibonacci retracement), 0.7160 (Dec. 17 low), 0.7136 (76.4 percent Fibonacci retracement of Jan 2016 low - Jan 2018 high)

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Strongly Bearish	Oversold	High
1H	Bearish	Oversold	Shrinking
4H	Bullish	Oversold	Low
1D	Strongly Bearish	Oversold	Expanding
1W	Bearish	Oversold	Low
Updated Aug 9, 15:15 GMT

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 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 holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.