Jump to content

AUD/USD, AUD/JPY climb as risk-on flows bolster Asian equities

Recommended Posts

Australian dollar rises amid heavy equity buying across US and Asian stock markets and oil prices climb after China signals it may start to reduce its aggressive Covid strategy.

Source: Bloomberg

Friday’s Asia-Pacific outlook

Asia-Pacific traders will look to close the week out on a high note today after Wall Street traders pushed US indexes higher for the third day. The benchmark S&P 500 index gained 1.23%. Asian equity markets also have the advantage of upward momentum. Hong Kong’s Hang Seng Index (HSI) closed over 7% higher on Thursday. The resumption of negotiations between Ukraine and Russia has lifted market sentiment, but fighting in Ukraine has only intensified, according to reports on the ground.

Commodity markets remain highly volatile despite the bullish activity in equity markets. WTI crude oil rose back above 100 per barrel overnight. Brent crude – the global benchmark – rose as well. Oil was on the move amid a new wave of Covid-induced lockdowns. However, Chinese President Xi asked policymakers to reduce the impact of Covid on the Chinese economy on Thursday, according to Xinhua News.

The foreign exchange market has seen heavy risk-on flows. AUD/JPY – a common FX risk gauge – rose to its highest level since early February 2018. Meanwhile, the safe-haven US dollar fell for a third day via the DXY index, with euro strength accounting for much of that drop. Gold was also advantaged from the weaker USD, which pushed spot prices over half a percent higher.

The dollar did gain against the Russian ruble, with USD/RUB rising nearly 7%. S&P cut Russia’s credit rating to CC from CCC-. The credit rating agency warned that another cut is possible. The Bank of Japan (BoJ) will provide today’s main event to close out the week. Analysts expect the central bank to hold steady on providing massive monetary support.

Australian dollar technical forecast

AUD/USD is trading just below the 0.7400 level after a third daily gain. A push above that level would open the door for a test of the March high at 0.7441. MACD is tracking back above its signal line, and the 20-day Simple Moving Average (SMA) is nearing a cross above its 200-day SMA. If prices pullback, the 23.6% Fibonacci retracement may offer a degree of support.

AUD/USD daily chart

AUD/USD daily chart
Source: TradingView

Follow Thomas Westwater on Twitter @FxWestwater

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. This information Advice given in this article is general in nature and is not intended to influence any person’s decisions about investing or financial products.

The material on this page does not contain a record of IG’s trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

Thomas Westwater | Analyst, DailyFX, New York City
18 March 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Mã giới thiệu Gate.io là gì? Gate.io định nghĩa mã giới thiệu là một mã đặc biệt mà người dùng mới có thể sử dụng khi đăng ký trên nền tảng. Nhờ mã "gate-SEBAMEYA", các thành viên mới được phép thực hiện giao dịch với tỷ lệ hoa hồng được xác định khi tạo tài khoản. Mã tham chiếu Gate.io: cổng-SEBAMEYA Hiện tại, Mã giới thiệu Gate.io được sử dụng là “gate-SEBAMEYA”. Là mã tham chiếu Gate.io được sử dụng nhiều nhất trên thế giới, có giá trị trọn đời, với tỷ lệ chiết khấu cao nhất là 70%.
    • Gate.io 紹介コードとは何ですか? Gate.io は、紹介コードを、新規ユーザーがプラットフォームに登録するときに使用できる特別なコードと定義しています。 「gate-SEBAMEYA」コードのおかげで、新規メンバーはアカウント作成時に決定された手数料率で取引を行うことができます。 Gate.io 参照コード: gate-SEBAMEYA 現在、Gate.io 紹介コードは「gate-SEBAMEYA」として使用されています。これは世界で最も使用されている Gate.io 参照コードであり、生涯有効で、割引率は最高 70% です。
    • Qu'est-ce que le code de parrainage Gate.io ? Gate.io définit le code de parrainage comme un code spécial que les nouveaux utilisateurs peuvent utiliser lors de leur inscription sur la plateforme. Grâce au code « gate-SEBAMEYA », les nouveaux membres peuvent effectuer des transactions avec le taux de commission déterminé lors de la création de compte. Code de référence Gate.io : gate-SEBAMEYA Actuellement, le code de parrainage Gate.io est utilisé comme « gate-SEBAMEYA ». Il s'agit du code de référence Gate.io le plus utilisé au monde, valable à vie, avec le taux de remise le plus élevé de 70 %.
  • Create New...