AUD/USD surges to 5-day high, jumps back above 0.7500 handle

Haresh Menghani FXStreet

A broad based USD selling pressure assisted the AUD/USD pair to recover swiftly and jumped to a 5-day high level of 0.7537 before retracing few pips to currently trade around 0.7520-25 band.

The greenback witnessed intense selling pressure against its Japanese counterpart and the spillover effect benefitted commodity-linked currencies the most, with the Aussie staging a remarkable recovery back above 100-day SMA to reclaim 0.7500 handle.

Last week, the Australian Dollar got hammered on expectations of further easing by RBA in order to combat deflationary pressure but was contingent on Q2 CPI print.

Ahead of the quarterly CPI release on Wednesday, which would be the key determinant of RBA monetary policy stance on August 11, the pair on Tuesday managed to recover sharply on broadly weaker US Dollar. Moreover, short-term traders would have been inclined to play it safe in case of any surprising rise in inflation.

Meanwhile, this week's key event risk would the oucome of FOMC meeting on Wednesday, where although the central bank is not expected to change its monetary policy stance but would be looked upon in order to get cues over prospects of any further rate-hike during 2016.

Technical levels to watch

From current levels, the momentum seems to boost the pair towards 0.7565 horizontal resistance, above which the pair seems all set to reclaim 0.7600 handle and head towards testing its next major resistance near 0.7630 region.

On the flip side, weakness back below 100-day SMA support near 0.7500-0.7490 region now seems to force the pair to break through recent lows support near 0.7450 level and aim towards testing 50-day SMA support near 0.7410-0.7400 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.