GBP/USD and AUD/USD edge higher, while USD/CAD rally stalls
Both sterling and the Australian dollar have managed to move up slightly against the US dollar, while recent USD/CAD strength seems to have been halted for now.
GBP/USD stabilises around $1.27
The consolidation of the past two months continues here. GBP/USD has shown little enthusiasm for a fresh move higher, caught between higher UK inflation and reducing expectations around an early Federal Reserve (Fed) rate cut.
Downside has been contained just above $1.26, so a more substantial move lower requires a close below this level. This would then see the price target the early-December lows around $1.25.
Recent upside has been capped below $1.28, leaving this as the principal barrier to break for any more sustained rally to develop.
AUD/USD sees buyers emerge
AUD/USD price has halted its decline from the December highs, and may yet be able to move higher again.
Support has been found around $0.655, as was the case in early December. This might then lead to a resumption of the move higher, which could see the price head back towards $0.665, and then on above $0.67.
Sellers will need a close below $0.652 to suggest that a fresh bearish view is beginning to form.
USD/CAD rally stumbles
The strong rally of January has run into some selling for USD/CAD, with the price unable to push on above the 50-day simple moving average (SMA).
A more substantial move lower may develop if the price closes back below C$1.34, and could mark the beginning of a move back to the December lows around C$1.32.
Alternately, a recovery above C$1.353 could see fresh upside, leading on to another test of C$1.36.
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