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AUD/USD has found some new-term stability

Four key markets in focus today: AUD/USD, USD/JPY, Spot gold and Atlas Iron.

ASX 200
Source: Bloomberg

AUD/USD

The pair seems to have found some near-term stability and has even managed to trade back above the 0.9300 handle. Perhaps selling a recovery into previous support at 0.932 will be the preferred strategy in the near term. The AUD is in for a busy couple of days starting with retail sales data today and then the RBA meeting tomorrow. Retail sales will be released at 11.30 AEST with the market expecting a 0.3% monthly rise and a 0.5% fall ex-inflation. We also have ANZ job ads due out at the same time where traders will be looking for a continuation of the recent momentum.

USD/JPY

After a strong performance last week, the pair has now retreated and could be headed to test support. With US non-farm payrolls not shooting the lights out, the greenback lost some ground and this weighed on the pair. The 102.30 region is where previous resistance lies and this level could now act as near-term support.  Traders looking to buy the dips in that region could consider stops below 101.80, near the previous downtrend resistance line.

Spot gold

The precious metal could be in for a recovery after non-farm payrolls disappointed on Friday. This effectively gives the Fed some breathing room as far as tightening is concerned as it looks to continue evaluating the progress in the labour market. With the US dollar pulling back and geopolitical risk continuing to ramp up, we could see gold come back to life in the near term. Traders could use a move back above 1300 as a momentum play to the upside.

Atlas Iron

After a long period of underperformance, AGO might finally be coming back to life. The stock was hammered on iron ore price weakness and went through a tough six months. Last week the stock broke through a downtrend resistance line and looks poised to extend its gains in the near term. The move back above 60 cents will also be encouraging for traders looking for a momentum play. There are also growing calls by analysts about the significant value the stock presents at these levels. There is potential for the stock to trade to 70 cents and beyond in the near term. 

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