TODAY AUDUSD SIGNAL : AUDUSD climbs further beyond 0.7300 fresh daily high amid risk-on impulse/weaker USD.


TODAY AUDUSD SIGNAL : AUDUSD caught fresh bids on Wednesday and reversed a major part of the overnight losses.

  • A positive risk tone, hawkish remarks by RBA’s Lowe benefitted the perceived riskier aussie.
  • The Ukraine crisis, stagflation fears should underpin the safe-haven USD and cap the upside.

The AUDUSD pair continued gaining traction through the early part of the European session and climbed to a fresh daily high, around the 0.7310-0.7315 region in the last hour.

TODAY AUDUSD SIGNAL : A combination of supporting factors assisted the AUDUSD pair to attract fresh buying on Wednesday and reverse a major part of the previous day’s losses. The Australian dollar drew some support from comments by the Reserve Bank of Australia governor Philip Lowe, saying that an increase in the cash rate from its record low is plausible this year. Apart from this, a generally positive tone in the equity markets benefitted the perceived riskier aussie amid modest US dollar weakness.

Old headlines that Ukraine is not insisting to join NATO, along with the announcement of a meeting between Russian and Ukrainian foreign ministers in Turkey on Thursday eased market jitters. This, in turn, led to a goodish recovery in the global risk sentiment and drove flows away from traditional safe-haven assets, including the greenback. That said, the possibility of a further escalation in the tensions between Russian and Western powers should cap the optimistic move, at least for now.

TODAY AUDUSD SIGNAL : In the latest developments, US President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports. Moreover, Britain announced that it would phase out the import of Russian oil by the end of 2022. The Russian foreign ministry reportedly said on Wednesday that the response to the Western sanctions will be sensitive and precise. This comes on the back of worries about the rapidly deteriorating global economic outlook, which should act as a tailwind for the buck.

Nevertheless, the AUDUSD pair, for now, seems to have snapped two successive days of the losing streak and stalled this week’s sharp retracement slide from over a four-month high. Traders now look forward to the US economic docket, highlighting the release of JOLTS Job Openings. The focus, however, will remain on developments surrounding the Russia-Ukraine saga. This, along with the broader market risk sentiment, might influence the USD and provide some impetus to the AUD/USD pair.

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