Tag: AUD VS USD

The Aussie pair’s slump the previous day could be linked to the overall rally in the US dollar backed by the increased chatters over Fed rate hike, as well as the virus woes. It’s worth noting the market’s caution ahead of China’s key economic data.

The US dollar cheered the last dose of the Fed comments before the policymakers sealed the blackout period ahead of next week’s Federal Open Market Committee (FOMC) meeting.

Federal Reserve Bank of New York President John Williams said Fed is approaching a decision to begin raising interest rates.

Further, US Retail Sales for December printed -1.9% MoM figure versus 0.0% expected and +0.2% prior. Further, the Michigan Consumer Sentiment Index for January also eased to 68.8 versus 70 forecasts and 70.6 previous readouts. The details also suggest that the highest inflation in 40 years weighs on consumer behavior.

It should be noted that Australia’s most populous state New South Wales (NSW) reported the biggest daily covid-linked deaths on Friday with 29 deaths, recently easing to 17 cases. Even so, Australian health authorities are confident NSW will see a plateau in its COVID-19 hospitalizations next week, as the state’s numbers track “better than the best-case scenario” predicted.

Moving on, China’s headline economics will be crucial for the AUD/USD traders ahead of Thursday’s Australia jobs report. That said, China’s Q4 2021 GDP is expected to rise 1.1% QoQ versus 0.2% prior while the Retail Sales may ease to 3.7% versus 3.9% for December. Additionally, Industrial Production for the said month is likely to have softened to 3.6% versus 3.8% YoY.

(Source: FXStreet)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Shortly after the World Health Organization (WHO) named Omicron as the new variant of concern for the recent mutation first found in Africa, investors fled to the new meme cryptocurrency Omicron (OMIC). 

The Omicron cryptocurrency gained 231% in the past 24 hours and reached an intraday’s high at $689. Despite the rising popularity of the coronavirus-themed coin, the market capitalization of OMIC remains unknown and only $496,407 was traded in the past day.

The Omicron token powers a decentralized reserve currency protocol on the Arbitrum Network, backed by a basket of assets, including USD coin (USDC) and liquidity provider tokens tied to MIM (Magic Internet Money).

The token was created in early November as a fork of OlympusDAO on the Arbitrum network and its protocol relies on stakers and bonders to ensure a return over a specified period of time. 

The Omicron token could continue surging if investors contribute to its yield farm by depositing funds within its protocols. Roughly $700,00 has been deposited within its protocols, which led to annual yields of around 70,000% for stakers unless the developers back out of the project.

According to the crypto project’s official documentation, the digital asset was created a few weeks before the World Health Organization named the variant Omicron. The project’s initial announcements do not mention anything about the coronavirus.

Omicron appears to be only available for purchase through decentralized exchange SushiSwap. Centralized exchanges have not started to support trading of the OMIC token yet.

(Source: FXStreet.com)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

The Aussie pair slumped during the last three days, as the negative Australian employment figures pushed the pair’s latest downside amid the US bank holiday. This was further deteriorated by the talks concerning a likely monetary policy divide between the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed), as well as the US-China phase 1 deal and Evergrande.

The following graph shows the AUD/USD trend of past 06 months:

Although AUD/USD bulls were trading downwards on account of October month contraction in Australia Employment change and a six-month high Unemployment Rate, they gained a little momentum as the Aussie jobs report showed a vast gap between market forecasts and actual data. The same enables the RBA (Reserve Bank Of Australia) to reiterate its rejection of the rate hike, also citing the inflation figures which are still expected to be ranging between the 2.0% and 3.0% target. On the contrary, the 31-year high US inflation puts the rate hike on the Fed’s platter. Hence, the US Dollar Index (DXY) has this key reason to aim for a fresh high since July 2020 and extend the last two-day uptrend.

Other than the central bank actions, downbeat forecasts concerning the economic growth of Australia’s largest customer China also weighed on the AUD/USD pair, majorly due to credit crisis for real-estate companies and power cut problems.

(Source: FXStreet)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Near 0.7445 is the 78.6 percent Fibonacci retracement line, which will be a test for the bulls.

AUD/USD Daily Chart

Despite the weakening news flow, the Australian dollar is trading at its highest level since July 19, testing the 0.74 level.

 The Australian dollar has only retraced around a third of its losses this month. To test the July 6 high at 0.7600, a break above 0.7480 is required. If the RBA makes a dovish flip next week, this will become more difficult.

(Source: FactSet)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Bitcoin, despite its decline, continued to gain dominance

Despite its decrease, Bitcoin (BTC) maintained its dominance this week, accounting for 46.3 percent of market value, a concerning indicator for big altcoins. While Bitcoin (BTC) lost 6% this week, big altcoins lost even more. With an 11 percent decrease this week, Ethereum (ETH) has fallen below $2,000 and is already challenging important support at $1,800.

Polkadot (DOT), Dogecoin (DOGE), Uniswap (UNI), Solana (SOL), and Polygon (MATIC) are among the most popular cryptocurrencies, all of which are down by more than 20%. The current state of the market is one of indecision and inactivity. The trading activity on major cryptocurrency exchanges remained relatively modest, indicating investors’ cautious attitude.

Bank of America allowed some of its clients to trade BTC

The Grayscale Bitcoin Trust (GBTC) will release 16,240 BTC worth of shares on July 18. The announcement could cause Bitcoin values to fluctuate in either direction as investors adopt a wait-and-see attitude. Bank of America, the second largest bank in the United States, has apparently allowed some of its clients to trade BTC futures. Argentina was said to be introducing a measure earlier this week that would allow workers to take Bitcoin as payment.

France has advocated for an EU-wide cryptocurrency regulation that would give the European Securities and Markets Authority (ESMA) in Paris more power and control over the region’s booming crypto industry.

Paypal and Visa, for example, have decided to maintain Bitcoin and other cryptocurrencies. Paypal has stated that its clients will now be allowed to buy crypto for up to $100,000 every week, a five-fold boost in buying limitations. After reporting crypto-linked card usage of $1 billion or more in the first half of 2021, Visa released a new version of a physical Bitcoin Debit card in Australia.

Source: economictimes

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Many people were not surprised by Square’s decision to enter the digital asset custody and service business. In June, at the Bitcoin 2021 Conference in Miami, Jack was at his eloquent best, revealing that Square was playing with the notion of a hardware wallet.

Square’s recent move is dissected

The global digital asset management (DAM) market is expected to expand at a compound annual growth rate (CAGR) of 12 percent from $3.4 billion in 2020 to $6.0 billion in 2025. Institutional institutions like Morgan Stanley and Goldman Sachs, as well as corporations, have recognised the digital currency space’s growth potential.

Secure custody alternatives for managing and using digital assets are in high demand around the world. Square’s desire to be a force to be reckoned with in this arena is self-evident.Wallets for digital currencies are used to receive, send, and store them. Hardware cryptocurrency wallets, also known as “Cold Wallets,” are more secure than “Hot Wallets” like desktop and smartphone wallets. Asset security has been raised by all market players, including retail and institutional investors.

Hardware Wallets’ Security

Hardware wallets have been known to be hacked in the past. Ledger, a Bitcoin hardware wallet supplier, was hacked in July of last year. More than 1 million user accounts were hacked. To establish itself as a strong and trustworthy player in the custody service space, Square would have to solve concerns about wallet security.

Source: Economic times

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

But, there seems to be a strong resistance above that should and most likely will come into play. After all, Australia is strengthening its lock down and is unlikely to reopen anytime soon, so the Australian dollar should continue to be weighed down over time.

Moreover, there is still a rising “risk off” mindset which supports the greenback around the world.

The psychological impact of the 0.75 level is very significant, so all things being equal, and a  belief that market that will find reasons to collapse.

If this pair drops to the 0.70 level in the coming months based on longer-term technical analysis, there would be any surprise.

(Source: FXEMPIRE)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

The resistance level can be seen at 0.7462, further uplifted to 0.7476, 0.7513, and 0.7533. While the fresh support level can be seen at 0.7413 & 0.7372 and breakdown further at 0.7339 & 0.7282 and so on.

The RSI (relative strength index) was marked at 39.64.

Bears are exerting pressure on critical levels at 0.7417/13, and a clear break here would confirm the bearish signal and pave the way for a deeper drop.

(Source: Fxstreet)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

AUD/USD 4-hour chart

The AUD/USD on the 4-hour chart, pair has been confronting solid resistance at the constantly falling trend line from Wednesday’s high around 0.7600 marks.
The bears might then capture the horizontal support levels of 0.7465 and 0.7445. The AUD/USD bears will then hunt upon on 0.7409 falls on Friday. However it may reverse the current trend and move north if the price breaks the bearish slope line.
The critical psychological level of 0.7500 would be the first priority for bulls in line.
There is marked 0.7520 horizontal resistance level that would then be followed by the 0.7535 high of Wednesday.
(Source: FXSTREET)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.