AUD/USD consolidates below 0.6900 handle, focus on trade developments
|- AUD/USD consolidates the overnight gains to over one-month tops.
- The USD nursed post-FOMC losses and continues to lend some support.
- Persistent uncertainty over a US-China trade deal might cap the upside.
The AUD/USD pair held steady near the 0.6880-85 region through the early European session on Thursday and consolidated the overnight upsurge to over one-month tops.
Having shown some resilience near 100-day SMA, the pair on Wednesday caught some aggressive bids and the intraday positive move got an additional boost on the back a dovish assessment of the latest FOMC monetary policy statement.
Bulls await fresh trade headlines
The Fed, as was widely expected, left interest rates unchanged and indicated that rates would remain on hold. However, the fact that the Fed reiterated its accommodative stance triggered a broad-based US dollar selloff and remained supportive.
The momentum took along some short-term trading stops being place near the 0.6860-65 horizontal zone and further collaborated towards accelerating the bullish rally, albeit persistent US-China trader uncertainty kept a lid on the pair.
It is worth reporting that the US President Donald Trump is yet to decide on the December 15 tariffs, though optimism remains on the back of news that negotiators were laying the groundwork for a preliminary deal to halt the trade war.
However, bulls preferred to wait for a confirmation before placing any fresh bullish bets around the China-proxy Australian dollar, which might further contribute towards capping additional gains for the major, at least for now.
Moving ahead, market participants now look forward to the release of US Producer Price Index (PPI), which might produce some short-term trading opportunities later during the early North-American session on Thursday.
Technical levels to watch
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