AUD/USD eases from 4-1/2 month tops, still comfortable above 0.6900 handle
|- US-China trade optimism helped AUD/USD to add to this week’s strong gains.
- Surging pound weighed on the USD, which provided an additional boost.
- Investors look forward to US retail sales data for some meaningful impetus.
The AUD/USD pair was seen oscillating in a range, comfortably above the 0.6900 handle and consolidated recent strong gains to 4-1/2 month tops.
The pair built on this week's solid bounce from the 100-day SMA support near the 0.6800 round-figure mark and gained some follow-through traction for the third consecutive session on Friday amid renewed US-China trade optimism.
Renewed trade optimism underpinned the aussie
A Bloomberg News report on Thursday indicated that the US has reached a “phase-one” trade deal in principle with China, which now averts the planned US tariffs on around $160 billion worth of Chinese goods on December 15.
Adding to this, the US negotiators have also offered to reduce existing tariffs on about $375 billion by 50%. The latest developments led to a fresh wave of the global risk-on trade and provided a strong boost to the China-proxy aussie.
This coupled with some renewed weakness surrounding the US dollar, primarily on the back of a strong upsurge in the British pound, remained supportive of the pair's positive momentum to the highest level since July 26.
Given the pair's upsurge of around 140 pips over the past three trading sessions, bulls took some breather amid slightly overbought conditions and look forward to the release of the US monthly retail sales data for a fresh impetus.
Technical levels to watch
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.