AUD/USD: bulls riding dollar weakness as risk steadies, eyes 0.7180
|- It was a positive start tot he week for the Aussie that extended its European gains in the US session, climbing from 0.7107 to a high of 0.7148, a touch through the 38.2% Fibo at 0.7145 while the greenback continues to struggle.
AUD/USD continues to take its cues from the performance of the Chinese Yuan which remains stubbornly on the defensive vs the greenback while bulls continue to attack dips but fail to cross the line through 6.93. However, financial markets were generally stable overnight, giving rise to a bid in industrial metals, gold and the high betas despite weakness in Asian markets yesterday.
Focus on the greenback
So long as the USD continues to underperform on the back of trade tensions and now data with a soft US retail sales headline, the antipodes can enjoy the ride for the meantime. For the day ahead, we have the RBA minutes and Chinese CPI ahead of US data in IP, JOLTS and housing stats.
AUD/USD levels
Valeria Bednarik, Chief Analysts at FXStreet explained that the short-term technical picture offers a mixed outlook:
"In the 4 hours chart, the price is above a bullish 20 SMA but below bearish 100 and 200 SMA, with the distance between moving averages shrinking and the price trapped in-between, a sign that clearer definitions are not far away. Technical indicators in the mentioned chart retreated from daily highs, but hold within positive ground, limiting chances of a downward extension, at least as long as the price holds above the 0.7080/90 price zone."
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.