Forex News Timeline

AUD/USD keeps Friday’s bearish impulse around key support levels.Fresh challenges to US President Joe Biden’s $1.9 trillion stimulus, covid strain worries weigh on risks.Mixed data renewed doubts over monetary policy actions.The key risk catalysts will be in spotlight amid a light calendar.AUD/USD begins the week’s trading on a back foot as sellers attack 0.7700, currently down at 0.7711, amid the initial hour of Monday’s Asian trading session. The aussie pair snapped a three-day winning streak on Friday as a few Democrats raised doubts over US President Biden’s fiscal stimulus. Also challenging the mood was the speedy infection of the coronavirus (COVID-19) strain and mixed data. Biden-backed optimism fades… Despite the notable welcome of US President Biden’s presidency, the mood started souring off-late. The reason could be traced from some of the Democratic members who aren’t in a mood to back Mr. President’s second stimulus that he teased during the first week of his reign. Also, the virus woes are getting stronger and push the UK, Europe and the US towards strong measures to tame the infection. Among them, Britain is likely to seal the national boundaries while the US is planning to recall an entry ban on travelers from the UK, Ireland and Brazil. Further, virus conditions in France and Germany are also worsening with record death tolls, which in turn suggests extensions of the national lockdown. Elsewhere, a preliminary reading of the Aussie Retail Sales disappointed in December while activity data came in mixed. Over the counter, the US PMIs also conveyed hidden fears of GDP contraction despite trying to unveil market like for Biden. Against this backdrop, Wall Street benchmarks turned red on Friday and the US 10-year Treasury yields also eased. Looking forward, the Australian economic calendar carries no major data in the first two days of the week, Tuesday is a bank holiday in Australia. That said, global market players will keep their eyes on the virus and stimulus updates for fresh impulse. As a result, AUD/USD sellers stay hopeful for entries. Technical analysis Failures to cross 13-day-old falling trend line, at 0.7790 now, tease AUD/USD bears’ entry. However, a five-week-old rising support line, at 0.7705, restricts the quote’s immediate downside ahead of 0.7645/40 support zone comprising January 04 low and December 17 high.  

Iraq, the OPEC’s second-biggest producer will pump around 3.6 million barrels daily in January and February, Bloomberg reported, citing Ali Nizar, the deputy head of State Organization for Marketing of Oil (SOMO). According to data compiled by Bloomberg, Iraq produced around 3.85 million per day in December. The planned oil output cut in January and February is mainly to make up for Iraq breaching its OPEC+ quota last year. However, Nizar said: “Baghdad’s ability to meet these targets depends on whether the Kurdistan Regional Government agrees to reduce supplies from fields under its control.” Related readsOil prices to rise and industrial metals and agriculturals to fall in 2021 – CEWTI consolidates around $52.50 mark, unfazed by surprise EIA inventory build

Here is what you need to know on Monday, January 25:The market’s mood soured on Friday, with global indexes closing mostly in the red. Concerns gyrated around  US further stimulus and covid. Major pairs were unable to attract investors, ending the week within familiar levels. UK Prime Minister Boris Johnson said that early studies suggest that the new coronavirus strain developed in the country could be up to 30% more deadly than the original one. Also, the South African strain shows resistance to antibodies from the original virus, which could put at doubt vaccines’ effectiveness. In the US, President Joe Biden’s proposed $1.9 trillion stimulus package faces opposition within his own party, as at least tow Democrat lawmaker said they would oppose to another relief package. EUR/USD closed the week with gains around 1.2170, while the GBP/USD pair settled in the red at 1.3680. The USD/JPY pair finished with a doji for a second consecutive week. Commodity-linked currencies were also unchanged for the week against the greenback. Gold prices were up to $1,875 a troy ounce, to settle at $ 1,855. Crude oil prices saw little action these days, with WTI trading at $52.00 a barrel. The upcoming week will bring the preliminary estimate of the US Q4 Gross Domestic Product, while the US Federal Reserve will have a monetary policy meeting. Both events may bring financial markets back to life.  Bitcoin Price Analysis: BTC bears eye strong $29,500 support – Confluence Detector

XAU/USD’s downside appears more compelling. Technical set up on the daily chart favors the bears.Focus remains on Biden’s stimulus passage and Fed decision. Gold (XAU/USD) witnessed a steep drop on Friday after facing rejection at the 21-daily moving average (DMA) of $1876 once again.   The sell-off drove the metal below the 50-DMA and 200-DMA supports. The bulls, however, quickly fought back control and managed to close the week above the critical 200-DMA at $1848. Gold Price Chart: Daily    Even though gold recaptured the 200-DMA, the downside appears more compelling heading into a big week ahead. Gold’s fate hinges on bipartisan support on US President Joe Biden’s $1.9 trillion stimulus proposal and the FOMC decision due this week. The 14-day Relative Strength Index (RSI) points south, at 46.77, suggesting that the recent bearish streak could likely extend.     The bears need a clearance of strong support around the $1835 region to unleash losses if the 200-DMA gives way once again. Further south, the Year-to-date (YTD) lows at $1803 could be put at risk. Meanwhile, the bearish bias will likely persist unless the buyers sustain footing above the powerful 21-DMA resistance. The next upside barrier awaits at the downward-sloping 100-DMA at $1883. Gold Additional levels