AUD/USD: Off 4.5-month highs as GBP/AUD hits highest since June 2016
|- AUD/USD has pulled back from 4.5-month highs despite trade optimism.
- GBP/AUD pair has risen to the highest level since the Brexit referendum.
AUD/USD is trimming gains amid a solid rise in the GBP/AUD pair.
The AUD/USD pair is currently trading at 0.6914, representing marginal gains on the day, having hit a high of 0.6939 an hour ago. That was the highest level since July 26.
The pair had jumped to 4.5-month highs on trade optimism. President Trump tweeted in the overnight trade that Washington was “very close” to a trade deal with Beijing.
Further, news hit the wires via Reuters in Asia that China has agreed to purchase $50 billion worth of US agricultural goods.
Fading trade tensions could bode well for the Australian economy and ease pressure on the Reserve Bank of Australia (RBA) to do more (RBA has cut rates three times this year). Even so, the AUD/USD pair has trimmed gains.
The pair may be feeling the pull of gravity due to GBP/AUD rally (AUD selling in GBP/AUD cross).
The GBP/AUD pair is currently trading at 1.9465, having hit a high of 1.9504 earlier today. That level was last seen in June 2016, when Britons voted to leave the European Union.
The Pound picked up a strong bid in early Asia after the exit polls predicted a landslide victory for the incumbent Prime Minister Boris Johnson.
Technical levels
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