|Day's Range||0.709 - 0.715|
|52 Week Range||0.6919 - 0.7917|
The Pound came out on top last week. Hopes of a delay to Brexit and expectations that Britain will not leave without a deal provided the upside. Trade talks also influenced as did central banks.
The Australian dollar has gone back and forth during the week, showing signs of confusion. However, it looks very likely that we are going to continue to favor the supportive area just underneath. Because of this, I do believe that the action that we are seeing on Friday only reiterates that fact.
During trading on Friday, the Australian dollar initially fell a bit during the trading session, but found support at the 0.7050 level again, turning around to show signs of life. Because of this, it’s very likely that the market will continue to rotate in this consolidation area.
The pair witnessed a bit of selling from the 1.1350 level in Thursday’s session, as it reached down towards the 1.1320 level. The area above is expected to remain noisy and volatile as the resistance extends up to the 1.14 level. Short term pullbacks in the market will continue to attract a lot of attention and also the Federal Reserve’s soft attitude towards rate hike will support the pair going higher. …Read MoreGBP/USD
Based on yesterday’s low and today’s early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the main 50% level at .7079.
A choppy start to the day sees the Aussie Dollar on a rollercoaster. The focus will be on economic data out of the Eurozone, trade talks and Brexit.
Investing.com - The U.S. dollar edged up on Friday in Asia even after a set of weak U.S. data released overnight. The Aussie Dollar was little changed after sliding to a 10-day low yesterday.
The U.S. dollar climbs higher Thursday despite weaker-than-expected economic data, after the Federal Reserve’s January meeting minutes a day earlier failed to put another dovish damper on market sentiment.
The Australian dollar is once again struck by China-related woes on Thursday, though this time it isn’t the Sino-U.S. trade spat that inflicted pain.
The Australian dollar fell hard during the trading session on Thursday, as we initially spiked towards the 0.72 handle. However, there is a major amount of support underneath that should continue to keep this market somewhat afloat, so I do believe that we are going to see a recovery.
The greenback recovered from its sudden fall after disappointing economic data on Thursday raised concerns about the strength of the U.S. economy and supported the Federal Reserve’s decision to hold rates steady for the foreseeable future. New orders for durable goods, excluding volatile items, fell unexpectedly in December, while business activity in the mid-Atlantic region declined to its weakest level since May 2016, according to the Philadelphia Fed's monthly survey.
The pair is currently stationed around the 1.1350 level as there are a lot of developments around the market and is also looking for clarity on the future momentum. The weak momentum around the USD is likely to support the EURO to reach higher, and if it breaks above 1.15 level, it will be extremely bullish and will attract many buyers.
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .7114.
The Australian dollar tumbled on Thursday after customs at China's northern Dalian port banned imports of coal from major supplier Australia. The currency was already on the back foot after a forecast of an interest rate cuts from a major Australian bank earlier on Thursday. The indefinite ban on coal imports from Australia, effective since the start of February, comes as major ports elsewhere in China prolong clearing times for Australian coal to at least 40 days.
Economic indicators out of Japan this week have proven to be more of an economic alarm bell than an indicator. What’s next for the BoJ?
Today’s wicked two-sided trade indicates investor indecision over Reserve Bank of Australia monetary policy. Although it would have been nice to see a drop in the unemployment rate, the steady jobs growth suggests there’s still little need for the RBA to cut interest rates in the near-term. However, falling housing prices and the weakness in the services sector offsets these gains. Therefore, it’s easy to conclude why the RBA shifted forward guidance to a more neutral setting.
Economic data out of Japan spells more trouble, with a particularly busy economic calendar placing focus on the EUR and USD.
Investing.com -- The euro turned higher against the dollar in early trading in Europe Thursday, as purchasing manager indices from France and Germany signalled that the euro-zone economy may be bottoming out after its slowdown at the end of 2018.
Investing.com - The Chinese yuan moved higher against the U.S. dollar on Thursday in Asia following reports that Washington and Beijing started to outline a trade deal to end a seven-month-long trade war.
The Australian dollar has pulled back a bit during the trading session on Wednesday, but it looks as if we are trying to grind to the upside longer-term.
Investing.com - The greenback was flat on Wednesday, as investors waited for the Federal Reserve to release the minutes from its latest monetary meeting.
Today’s data raises issues about inflation in New Zealand and the employment situation in Australia, but this may have to take a backseat ahead of today’s release of the Fed minutes. Traders are likely to react to any news regarding the Fed’s balance sheet. This will determine whether the minutes are dovish or hawkish.
The Euro initially pulled back during Tuesday’s session but received strong support around the 1.13 area, which helped to rally higher. The pair is likely to continue its long-term consolidation which now ranges between the 1.12 and 1.15 level. If the pair can clear above the 1.1350 level, then it will be a bit positive for the market and could reach another 100 pips higher. …Read MoreGBP/USD
Based on the early price action, the direction of the AUD/USD on Wednesday is likely to be determined by trader reaction to the 50% level at .7175 and the Fibonacci level at .7154.