Free Trial
EURJPY TECHS

Sharp Friday Rally Puts Markets Back to Flat

STIR

BLOCK, Short Jun'23 SOFR Puts

US

SF Fed Daly on "Wow" Jobs Report

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Technical Markers Point To AUDUSD Bull Trend

AUD

The AUDUSD continued to trend higher Friday night after the post-US CPI jump on Thursday. It is currently trading around 0.6700, the highest in almost 2 months. This was predominantly driven by the weaker USD, which is now down 4.1% from Thursday’s high.

  • AUDUSD broke through the initial resistance of 0.6695 and then 0.6705 (September 21 high) but couldn’t maintain it. 0.6768 is a level to watch, as a break would be a 61.8% retracement of the August 11 – October 13 downleg. AUD has confirmed a clear break of the 50-day EMA, which signals scope for an extension of the bull cycle.
  • While up against the USD, AUD did underperform the G10, apart from GBP and CAD. AUDNZD fell to 1.0951 Friday night but has begun today higher at just under 1.100. AUDEUR is down to 0.648, while AUDJPY is fairly stable at 93.03.
  • Equity markets were up across the board Friday night, except for the FTSE, as the risk rally continued. The S&P 500 rose 0.9% and the Euro Stoxx +0.6%. Base metals also posted a broad-based rally with the LME index up 3.7% and at its highest level since August 11. Oil came off of its intraday high on Friday to end the session at $88.86/bbl still up 2.8% on the day. Iron ore prices also rallied and are now around $92 and could go higher after China announced a 16-point plan to rescue its property sector.
  • No data or events in Australia today. The RBA publishes the minutes from its last meeting tomorrow.
255 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The AUDUSD continued to trend higher Friday night after the post-US CPI jump on Thursday. It is currently trading around 0.6700, the highest in almost 2 months. This was predominantly driven by the weaker USD, which is now down 4.1% from Thursday’s high.

  • AUDUSD broke through the initial resistance of 0.6695 and then 0.6705 (September 21 high) but couldn’t maintain it. 0.6768 is a level to watch, as a break would be a 61.8% retracement of the August 11 – October 13 downleg. AUD has confirmed a clear break of the 50-day EMA, which signals scope for an extension of the bull cycle.
  • While up against the USD, AUD did underperform the G10, apart from GBP and CAD. AUDNZD fell to 1.0951 Friday night but has begun today higher at just under 1.100. AUDEUR is down to 0.648, while AUDJPY is fairly stable at 93.03.
  • Equity markets were up across the board Friday night, except for the FTSE, as the risk rally continued. The S&P 500 rose 0.9% and the Euro Stoxx +0.6%. Base metals also posted a broad-based rally with the LME index up 3.7% and at its highest level since August 11. Oil came off of its intraday high on Friday to end the session at $88.86/bbl still up 2.8% on the day. Iron ore prices also rallied and are now around $92 and could go higher after China announced a 16-point plan to rescue its property sector.
  • No data or events in Australia today. The RBA publishes the minutes from its last meeting tomorrow.