A restoration of threat urge for food despatched the Aussie increased throughout the board at the moment.
But can AUD/USD transfer previous its intraweek excessive resistance zone?
Before shifting on, ICYMI, yesterday’s watchlist seemed for bullish consideration for EUR/CHF forward of ECB’s coverage determination. Be positive to take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Fresh Market Headlines & Economic Data:
Single-family housing begins up by 1.1%, constructing permits rebounded by 13.8% in February signaling that the housing market might be stabilizing amidst increased mortgage charges
U.S. labor market stays tight because the preliminary jobless claims dropped by 20K (probably the most since July) to 192K and reversed a spike from the earlier week.
Philadelphia Fed manufacturing index improved from -24.3 to -23.2 in March, however missed -15.6 estimates and marked its seventh consecutive destructive studying.
ECB raised rates of interest by 50bps as anticipated and goes “data-dependent” going ahead.
ECB stated it’s intently watching “current market tensions” and is “ready to respond as necessary to preserve price stability and financial stability in the euro area.”
U.S. Treasury Secretary Janet Yellen instructed lawmakers that the U.S. banking system is “sound” however warned that solely uninsured deposits able to creating systemic dangers might be protected.
Regional financial institution First Republic Bank acquired $30B lifeline from a gaggle of huge U.S. banks together with Bank of America, JP Morgan, and Citi to assist stabilize depositor base.
Oil snaps declining streak as Saudi, Russia assembly calms markets
Price Action News
An absence of recent catalysts saved the foremost currencies in tight ranges till about halfway by means of the Asian session when risk-taking dominated the headlines.
The Swiss National Bank (SNB) giving Credit Suisse a lifeline and the U.S. monetary establishments banding collectively to create a rescue package deal for First Republic Bank might need additionally helped maintain the bullish momentum for “risky” bets like AUD, NZD, CAD, GBP, and EUR.
AUD, specifically, steadily gained floor and revisited a variety of its intraweek highs againts its main counterparts forward of the European session open.
Eurozone’s ultimate CPI launch at 10:00 am GMT
U.S. industrial manufacturing at 1:15 pm GMT
U.S. preliminary UoM shopper sentiment report at 2:00 pm GMT
Use our new Currency Heat Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
AUD/USD took full benefit of the risk-friendly vibe and was one of many greatest winners of at the moment’s Asian session.
The pair began the day close to its U.S. session highs earlier than rising by only a bit greater than 80 pips or its full every day ATR.
But can AUD maintain its bullish momentum?
AUD/USD is now consolidating at .6710, which strains up with R2 of its Standard Pivot Points on the 15-minute timeframe.
More importantly, .6710 is correct across the pair’s unbroken resistance ranges this week.
With solely the U.S. preliminary UoM shopper sentiment report on the docket, you’ll be able to wager that merchants will proceed to cost of their world banking considerations (or reduction).
Focus on the swift actions of authorities and different main banking establishments can bust AUD/USD from its present consolidation and take it to the .6740/.6750 ranges close to the Pivot Point’s R3.
But if we see profit-taking or threat aversion within the subsequent couple of hours, then AUD/USD might dip again all the way down to the .6680 or .6660 earlier areas of curiosity.
What do you suppose?