AUD/USD inches higher to 0.6890 area, looks to post modest weekly gains
|- Trade optimism helps the AUD gather strength on Friday.
- Upbeat retail sales data from the US allows USD to recover.
- The AUD/USD pair remains on track to close the second straight week higher.
The AUD/USD pair stretched higher into the London fix and rose to a fresh daily high of 0.6887. As of writing, the pair was up 0.28% on the day at 0.6885.
AUD capitalizes on trade optimism
The latest headlines surrounding the US-China trade conflict and a weakening Greenback helped the pair preserve its bullish momentum on Friday. Earlier today, China’s State Council announced that they have decided to exclude some agricultural products including soybeans and pork from retaliatory tariffs on US imports.
Additionally, commenting on reports claiming that his administration was planning to offer an interim trade deal to China to secure additional purchases of agricultural products in exchange for deyaing tariffs, US President Trump said that he would rather have a complete trade deal with China rather than an interim one.
Later in the day, the data from the US revealed that retail sales in August rose 0.4% to beat the market expectation of 0.2% and the University of Michigan's Consumer Confidence Index improved to 92 in September from 89.8 in August. However, the US Dollar Index failed to make a meaningful recovery despite the upbeat data and was last down 0.17% on a daily basis at 98.20.
There won't be any macroeconomic data releases in the remainder of the day and the pair is likely to close the second straight week in the positive territory.
Technical levels to watch for
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.