Sunday, 18 August 2019 02:00 GMT

Did AUDUSD Bottom? GBPUSD Wobbled as UK PM Resigned Amidst Brexit

(MENAFN - DailyFX) Asia Pacific Market Open Talking Points US Dollardepreciation prolonged into a second day, isAUD/USDbottoming?GBP/USDwobbled, UK PM Theresa May resigned with Brexit talks ongoingEurovulnerable to European Parliamentary Election results in thin Asia trade Trade all the major global economic data live as it populates in the economic calendar and follow the live coverage for key events listed in theDailyFX Webinars . We'd love to have you along.

US Dollar Weakens for a Second Day The US Dollar underperformed against its major counterparts, extending its decline into a second day. Some point to a set of softer-than-expected US durable goods orders data as a catalyst, but weakness in the Greenback was gradual and occurred throughout the session. This could be as a result of positioning ahead of a loaded week for US economic data and the threat it poses toUSD via Fed rate cut bets .

As a result, the pro-risk Australian and New Zealand Dollars outperformed, also benefiting from a cautious uptick in sentiment as equities began rising in Asia before trimming gains during the Wall Street trading session. This resulted in the Euro Stoxx 50 ending the day about 0.71% to the upside while theS & P 500only finished 0.14% higher.

Australian Dollar Technical Analysis Taking a closer look at the AUD/USD daily chart reveals a bottom that could be in the works. The pair formed a bullish Morning Star candlestick pattern while simultaneously pushing above the near-term falling resistance line from the middle of April. Another confirmatory close to the upside may be the momentum needed to overturn the dominant downtrend, exposing resistance at 0.6982.

AUD/USD Daily ChartDid AUDUSD Bottom? GBPUSD Wobbled as UK PM Resigned Amidst BrexitChart Created in TradingView

British Pound Wobbles as Theresa May Resigns It was long coming and speculation of it sent theBritish Poundtumbling in recent weeks, but UK Prime Minister Theresa May announced on Friday thatshe will be stepping downand a new leader is anticipated by the end of July. Being official, this will complicate Brexit negotiations depending on what agenda the new PM takes. GBP/USD was volatile, being pushed and pulled between that and US Dollar weakness.

Monday's Asia Pacific Trading Session The Euro could be volatile to theEuropean Election results , with a greater share of Eurosceptic parties a fundamental political threat to the currency.EUR/USD technical signalsdo point to potential weakness down the road. This may be compounded by lower-than-normal liquidity levels with US markets offline until Tuesday for the Memorial Day holiday with a relatively quiet economic docket in Monday Asia trade.

FX Trading ResourcesSee how equities are viewed by the trading community at theDailyFX Sentiment Page See our free guide to learn what are thelong-term forces driving US Dollar prices See ourstudy on the history of trade warsto learn how it might influence financial markets! --- Written by Daniel Dubrovsky, Junior Currency Analyst for

To contact Daniel, use the comments section below or@ddubrovskyFXon Twitter



Did AUDUSD Bottom? GBPUSD Wobbled as UK PM Resigned Amidst Brexit

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