Coronavirus Delta keeps RBA cautious, AUD stays pressured

Ross J Burland FXStreet

As explained in the pre-Reserve Bank of Australia note, A covid-tantrum on the cards for today's RBA, the RBA indeed state don the cautious side pertaining to the rapid spread of the Delta variant in Australia.

In technical analysis, it was stated that ''the price is on course for a restest of the 38.2% Fibo or a possible run down to the 50% ratio if bulls do not commit at this juncture.''

AUD/USD prior technical analysis

This is where we are today, touching the 50% mean reversion as forecasted above in the prior analysis:

The situation in Australia is a touch better today according to the latest data numbers, slightly down in Vicotria:

Victoria has recorded 221 new cases of the coronavirus today.

Of today's new infections, 98 have so far been linked to known cases and outbreaks.

Reported yesterday: 221 new local cases and 0 new cases acquired overseas.
- 36,716 vaccine doses were administered
- 42,429 test results were received

More later: https://t.co/lIUrl1hf3W #COVID19Vic #COVID19VicData [1/2] pic.twitter.com/iEdGj4Sr1U
— VicGovDH (@VicGovDH) September 7, 2021

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.