The current price forecast of AUD/USD is being influenced by the United States, with a particular focus on the actions of Fed Chair Jerome Powell. There appears to be a divergence in guidance between the Reserve Bank of Australia and the Federal Reserve. The daily chart for AUD/USD is drawing attention to the “golden cross” pattern.
The Japanese Yen is being influenced by the policy divergence between the Federal Reserve and the Bank of Japan. While the Fed has maintained a hawkish tone, there is speculation that the BoJ may shift its policy quicker due to rising inflation. However, improving wage dynamics have not been broad-based and inflation is still considered ‘transitory’. The BoJ has intervened in the currency market three times last year, but recent resurgences in USD/JPY suggest interventions may be temporary. Despite lacklustre performance in the US dollar, USD/JPY has held up well due to policy divergence being a key driver. The pair may face resistance at the upper channel trendline and 61.8% Fibonacci retracement level, with concerns that the BoJ may step in again if it reaches 145.80 level.
The XAU/USD has been exhibiting a predominantly horizontal trend in the past few weeks. Yet, the current price behavior renders it susceptible to a potential decrease. What are the prospects and significant thresholds that demand attention in the XAU/USD? This concern arises following remarks made by Powell
Asian stocks are expected to open mixed, with the Nikkei showing resilience despite a downbeat Wall Street handover. Markets in Hong Kong and mainland China are closed for the Dragon Boat Festival holiday. The day ahead will bring interest rate decisions from the Philippines and Indonesia, while the Bank of England (BoE) is expected to push on with further tightening. The GBP/USD pair is largely on hold for further validation from the central bank, and any upside may leave resistance at the 1.300 level. The Straits Times Index continues to trade within a symmetrical triangle pattern, indicating market indecision.