AUD/USD analysis: at key inflection point
|AUD/USD Current price: 0.7569
- Relief about the US-China trade war helped the Aussie bounce.
- AUD/USD underpinned in the US session by higher oil, gold prices.
It was a win-win day for the Aussie, with strong equities at the beginning of the day and recovering commodities during the second half of it pushing the AUD/USD pair to 0.7573, its highest in almost a month. The commodity-linked currency benefited from headlines indicating that the US and China put the trade war "on hold," as both economies won't be imposing tariffs to each other, at least for now, while both economies agreed to reduce the US trade deficit with China. There were no more details on the matter but was enough to trigger risk-appetite across the financial world. The upcoming Asian session will see no relevant macroeconomic releases, and in fact is quite a light week for Australia, which could end up benefiting the AUD, despite the dollar retains its latest strength against other rivals. The pair is currently trading a couple of pips above the 38.2% retracement of its latest weekly slump, and presents a bullish short-term stance in the 4 hours chart, as the price is also well above its 20 and 100 SMA, while technical indicators entered positive territory, now losing partially its upward momentum, but far from changing course. The current level is key and if it is clearly broken, the recovery can extend up to 0.7660, the 61.8% retracement of the mentioned decline.
Support levels: 0.7520 0.7470 0.7435
Resistance levels: 0.7590 0.7625 0.7660
View Live Chart for the AUD/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.