Forex Flash: AUD/USD receives further bump following Q4 GDP numbers - OCBC Bank

Emmanuel Ng of OCBC Bank notes that AUD/USD received another bump up after 4Q GDP numbers came in slightly firmer than expected, a day after Jan retail sales surprised with an expansion and the RBA sounded more upbeat on economic prospects on Tuesday.

He feels that in the short term, the pair may be at a crossroads, endeavoring to latch on to improvements in risk appetite levels. He writes, “Note that a close above the 1.0260/70 area may well neutralize the recent negativity attached to the pair although the 200-day MA (1.0345) should may cap for now. Down south, support is expected to materialize towards 1.0200.”

Looking to USD/JPY, Ng adds that the pair may remain in a consolidative mood in the near term, although a positive complexion for the US and positive risk appetite levels may buoy the pair somewhat. He writes, “In the interim, we believe further position adjustments (i.e., downside potential) in the pair cannot be discounted within a 91.40-94.50 band.”