Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    AUD/USD recovers from drop to 0.6575 but still in the red on Tuesday

    Source Fxstreet
    Jan 30, 2024 19:36
    • AUD/USD fell into familiar lows after a rejection from 0.6625.
    • The Aussie found a floor near 0.6575, but upside momentum remains thin.
    • Australian CPI inflation in the pipe ahead of Wednesday’s Fed rate call.

    AUD/USD is cycling the 0.6600 handle in a rough range as Aussie (AUD) traders gear up for Australian Consumer Price Index (CPI) inflation due during the early Wednesday session ahead of another rate cal from the US Federal Reserve (Fed).

    Australia’s fourth-quarter CPI is expected to contract slightly on an annualized basis, with the headline YoY CPI forecast to print at 4.3% versus the previous 5.4% and the QoQ data expected to slip to 0.8% from 1.2%.

    On the Fed side, markets are awaiting a pivot from Fed chairman Jerome Powell. Rate swap markets have seen their rate cut bets steadily pushed further out, and the CME’s FedWatch Tool now sees a less than 40% chance of a first rate cut from the Fed in March. Swaps originally priced in an over 80% chance of a March rate trim back in December, but easing inflation and stubbornly strong economic data from the US over the last quarter renders a rate cut from the Fed next to impossible for fear of re-stoking inflationary pressure.

    The back half of the trading week will cap off with China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) figure expected to tick down slightly from 50.8 to 50.6, and broader markets will be looking for a softer print in Friday’s US Nonfarm Payrolls. Friday’s NFP is forecast to tick down to 180K for January from December’s 216K.

    AUD/USD technical outlook

    The AUD/USD reclaimed the 0.6600 handle on Tuesday after a near-term dip into 0.6575, and the pair is catching intraday technical support from the 200-hour Simple Moving Average (SMA) near 0.6590.

    The Aussie continues to catch technical support from the 200-day SMA just above 0.6550 on the daily candlesticks. The pair is still caught in a congestion pattern below the 50-day SMA just above 0.6650.

    AUD/USD hourly chart

    AUD/USD daily chart

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    USD/JPY Price Analysis: Rebounds to 150.00 amid dovish BoJ remarksThe USD/JPY stages a recovery after diving to a two-week low of 149.21, climbing above the 150.00 figure on Friday amidst dovish comments by the Bank of Japan (BoJ) Governor Kazuo Ueda during the Asian session.
    Source  Fxstreet
    The USD/JPY stages a recovery after diving to a two-week low of 149.21, climbing above the 150.00 figure on Friday amidst dovish comments by the Bank of Japan (BoJ) Governor Kazuo Ueda during the Asian session.
    placeholder
    Forecasting the Coming Week: ECB meets Non-farm Payrolls… and PowellThe Greenback ended the week on a slight bearish note, as investors continued to price in a potential interest rate cut by the Fed in June, while unexpected weakness in key fundamentals also put the currency under pressure, allowing instead some breathing room in the risk-associated universe.
    Source  Fxstreet
    The Greenback ended the week on a slight bearish note, as investors continued to price in a potential interest rate cut by the Fed in June, while unexpected weakness in key fundamentals also put the currency under pressure, allowing instead some breathing room in the risk-associated universe.
    placeholder
    EUR/USD Price Analysis: Depreciates to near 1.0830 followed by 21-day EMAEUR/USD continues its losing streak for the third successive session as traders exercise caution ahead of the release of key US Personal Consumption Expenditures - Price Index data, which could potentially influence the Federal Reserve's monetary policy stance.
    Source  Fxstreet
    EUR/USD continues its losing streak for the third successive session as traders exercise caution ahead of the release of key US Personal Consumption Expenditures - Price Index data, which could potentially influence the Federal Reserve's monetary policy stance.
    goTop
    quote