Extra gains in AUD appear to have lost traction – UOB

Pablo Piovano FXStreet

In view of FX Strategists at UOB Group, the upside momentum in the Aussie Dollar seems to have run out of steam in the near term.

Key Quotes

24-hour view: “We expected AUD to trade sideways between 0.6845 and 0.6885 yesterday. However, AUD dropped to 0.6831 before rebounding strongly to end the day unchanged at 0.6865 (0.0%). The rapid swing has clouded the short-term outlook and we continue to expect AUD to trade sideways for today, likely between 0.6845 and 0.6885”.

Next 1-3 weeks: “We have held the same view since last Tuesday (10 Sep, spot at 0.6865) wherein AUD “is ready to tackle 0.6910”. After touching 0.6895 last Thursday (12 Sep), AUD has not been able to make much headway. The quiet consolidation over the past several days has resulted in a rapid loss in momentum and unless AUD can ‘punch’ above 0.6900 within the next 24 to 48 hours, a break of 0.6825 (no change in strong support level) would not be surprising. In other words, the odds for further AUD strength have diminished and a break of 0.6825 would indicate that 0.6895 is the extent of the recovery phase that started earlier this month”.

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 hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.