AUD/USD clings to gains, just below Monday’s near 4-month tops
| • Declining US bond yields add to the prevalent USD selling bias.
• US-China trade truce remains supportive of the positive move.
The AUD/USD pair caught some fresh bids on Tuesday and remains within striking distance of near four-month tops set in the previous session.
The pair continued finding decent buying interest near previous swing high, now turned support, around the 0.7345 region, with bulls shrugging off a slight disappointment from Aussie current account deficit figures for the third quarter of 2018.
The positive move seemed rather unaffected by the latest RBA monetary policy update, wherein the central bank kept interest rates unchanged at a record low level of 1.5% and did little to alter market expectations of the interest rate lift off in 2020.
Meanwhile, the latest optimism over a US-China trade truce, coupled with a sharp fall in the US Treasury bond yields exerted some fresh downward pressure on the US Dollar and remained supportive of the strong bid tone surrounding the China-proxy Australian Dollar.
In absence of any major market moving economic releases from the US, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum through Tuesday trading session.
Technical levels to watch
The 0.7395-0.7400 region might continue to act as an immediate resistance and is closely followed by the very important 200-day SMA, around the 0.7415-20 region. On the flip side, the 0.7350-45 region might continue to protect the immediate downside, which if broken might prompt some long-unwinding trade and drag the pair further towards the 0.7300 handle.
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.