Analysts from Lloyds Bank favor the upside in the AUD/USD pair as long as risk sentiment holds up.

Key Quotes:

“Having experienced an aggressive sell-off through the first few weeks of 2016 – hitting a new 6-year low below 0.69 – AUD has strengthened by over 7% since mid-January.”

“The rally in AUD/USD has been supported by the stabilisation in risk sentiment, the relatively hawkish stance of the RBA (which maintained its policy rate at 2.00% in its February meeting) and growing optimism around the domestic economy.”

“The pair has found further assistance from the re-pricing of rate expectations in the US, with the first fully priced 25bp hike pushed back to early 2017. This has led to USD weakness, most evident against high-yielding commodity currencies.

“As long as global risk sentiment holds up, we favour gradual AUD appreciation, toward 0.78 by the end of the year.”

Analysts from Lloyds Bank favor the upside in the AUD/USD pair as long as risk sentiment holds up.


(Market News Provided by FXstreet)

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EUR/GBP rose further during the American session and printed a fresh 6-day high at 0.7789. The pair remains near the highs, consolidating gains and having the best day in more than two weeks.

A weak pound across the board pushed EUR/GBP to the upside and is now up more than 50 pips. While EUR/USD trades near daily highs above 1.1040, GBP/USD is holding at daily lows below 1.4200.

EUR/GBP correction over?

The pair last week bottomed at 0.7689, after falling from 0.7928 (1-year high). The recent rally of the euro could signal that the correction has ended. Price found support at the 23.6% Fibonacci retracement of the rally 0.70 – 0.79.

The pair today is rising and it moved to the 20-day moving average that stands at 0.7785/90. If the pair manages to rise and consolidate above it could give more signals that the correction is over.

Above 0.7800, the next resistance levels to watch lie at 0.7850 (Feb 09 high) and 0.7990/95 (February highs). On the opposite direction, support now could be seen at 0.7770/75 (March 04 high) and 0.7750 (March 03 & 07 high).

EUR/GBP rose further during the American session and printed a fresh 6-day high at 0.7789. The pair remains near the highs, consolidating gains and having the best day in more than two weeks.

(Market News Provided by FXstreet)

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The sterling is losing further altitude today, sending GBP/USD back below the 1.4200 handle, or session lows.

GBP/USD lower as risk-off intensifies

The pair lost around a cent since overnight tops near 1.4280, dragged lower in response to a pick up in the risk aversion sentiment in the global markets.

In addition, earlier comments by BoE’s Carney and Cunliffe regarding a ‘Brexit’ scenario seem to have dampened any bullish attempt in the pair, collaborating further with the daily decline.

Furthermore, absent data in the UK docket and second-tier releases in the US left spot exposed to the broader risk trends. Looking to Wednesday’s calendar, UK’s Industrial/Manufacturing Production figures will be in the limelight ahead of the NIESR GDP Estimate.

GBP/USD levels to consider

As of writing the pair is retreating 0.63% at 1.4176 and a breach of 1.4079 (low Jan.21) would open the door to 1.4028 (23.6% Fibo of 1.4670-1.3833) and then 1.3836 (multi-year low Feb.29). On the other hand, the next hurdle lines up at 1.4348 (61.8% Fibo of 1.4670-1.3833) followed by 1.4387 (55-day sma) and finally 1.4410 (high Feb.19).

The sterling is losing further altitude today, sending GBP/USD back below the 1.4200 handle, or session lows…

(Market News Provided by FXstreet)

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USD/JPY came under mild pressure at the Wall Street opening and dropped to fresh daily lows sub-113.00, as US yields continued to fall given the risk-off mood surrounding financial markets.

USD/JPY fell back below 113.00 and slid to a low of 112.63 in recent dealings. At time of writing, the pair is trading at 112.65, recording a 0.68% loss on Tuesday.

USD/JPY levels to consider

As for technical levels, next supports are seen at 112.15 (Mar 1 low) and 111.88 (Feb 25 low). On the other hand, resistances could be found at 113.50 (Mar 8 high), 114.54 (Mar 2 high) and 115.05 (38.2& Fibo retracement of 121.68-110.97).

USD/JPY came under mild pressure at the Wall Street opening and dropped to fresh daily lows sub-113.00, as US yields continued to fall given the risk-off mood surrounding financial markets.

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Analysts at Brown Brothers Harriman explained that the more immediate focus in on the ECB. Key Quotes:”It meets Thursday. The OIS market suggests a 10 bp deposit cut has been discounted Further out; the derivatives market expects the bottom to be nea…

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The stock markets in the US opened lower following five straight sessions of gains, which was the longest winning streak since October.

At time of writing, the Dow Jones Industrial Average (DJIA) was down 122 points or 0.70%. The S&P 500 index was down 19 points or almost 1%. Nasdaq index was down 28 points or 0.60% as well. The Dow and S&P 500 have both advanced about 9% since mid February.

The drop witnessed today is due to the release of disappointing Chinese trade data, which heightened concerns about the world’s second-largest economy.

In Europe, Stoxx 600 index fell 0.80% due to China led weakness in the mining stocks. In Asian trade, Hong Kong’s Hang Seng Index fell 0.7%, while Japan’s Nikkei Stock Average dropped 0.8%.

The stock markets in the US opened lower following five straight sessions of gains, which was the longest winning streak since October.

(Market News Provided by FXstreet)

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The buying interest in Gold dropped despite risk aversion in the equity markets across Europe and US. Prices fell to a session low of $1145.54/Oz levels.

Hovers around 5-DMA

Prices currently trade around $1147.60 (5-DMA) levels. The major European equity markets were down more than 1% earlier today and the US indices have opened lower as well. However, prices failed to capitalize on the risk-off and fell back from the session high of $1161.03 levels.

Nevertheless, the yellow metal remains on a positive footing, with the latest decline being blamed on chart driven factors – technical correction.

Gold Technical Levels

The immediate support is seen at 1138.58 (hourly 200-MA) – 1135.73 (10-DMA), under which the metal could drop to 1127.24 (Mar 2 low). On the other hand, a break above 1149.07 (hourly 50-MA) could open doors for a re-test of 1156.89 (Mar 3 high).

The buying interest in Gold dropped despite risk aversion in the equity markets across Europe and US. Prices fell to a session low of $1145.54/Oz levels.

(Market News Provided by FXstreet)

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Chief FX Strategist at Scotiabank Shaun Osborne has reiterated the pair’s neutral/bearish outlook in the near term.

Key Quotes

“EURUSD’s push back form the mid 1.10 area has been gradual and grudging, judging by short-term price action”.

“Every minor dip has generated buying interest but the drop back from the intraday peak has continued nonetheless”.

“Intraday charts suggest a peak is in place for EURUSD in the short run at least. We think the signaled peak is perhaps a little more important than the short-term price action would otherwise suggest as it comes at a fairly important point on the longer term charts (200-day MA as well as the base of the noted 1.1050/1.11 congestion range)”.

“Negative momentum will only build more meaningfully below 1.0940, yesterday’s low, from here”.

Chief FX Strategist at Scotiabank Shaun Osborne has reiterated the pair’s neutral/bearish outlook in the near term…

(Market News Provided by FXstreet)

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