AUD/USD bounces in tandem with Yuan, Copper, 0.7400 back on sight
|- Bulls fighting back control amid resurgent US dollar supply, Yuan demand.
- Will the bounce sustain in a data-empty session ahead?
AUD/USD staged a V-shaped recovery from two-week lows of 0.7318 and now consolidates near the 0.7370 region, as the bulls await a fresh impetus for the next push higher.
The Aussie is closely tracking the USD/CNY price-action, having initially dropped in tandem with the Yuan, as the Chinese currency hit fresh yearly lows at 6.8117 versus the US dollar amid mounting US-China trade war fears.
However, the spot quickly reversed to 0.7384 highs after the Yuan recovered losses and added to the selling pressure on the US dollar, as the greenback resumed its declines fuelled by Trump’s negative remarks on the US interest rates hike outlook.
Meanwhile, the rebound in copper prices also aided the renewed upswing in the resource-linked AUD. Looking ahead, the major will remain at the mercy of the market sentiment and US dollar moves, as the US macro calendar remains data-empty.
AUD/USD Technical Levels
FXStreet’s Analyst Omkar Godbole offers key technical levels for trading the Aussie in the day ahead.
“Resistance: 0.7401 (10-day MA), 0.7441 (July 19 high).
Support: 0.7310 (July 2 low), 0.7160 (Dec 2016 low), 0.7145 (May 2016 low).”
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