AUD/USD stages modest recovery, trades near 0.7060
|- US-China trade headlines help AUD rebound.
- US Dollar Index clings to daily gains, looks to snap 4-day losing streak.
The AUD/USD pair erased a large part of this week's gains on Thursday and dropped to a daily low of 0.7040 before staging a technical recovery in the NA session. As of writing, the pair was trading at 0.7063, losing 0.4% on a daily basis.
Earlier today, the data from China showed that industrial production expanded by 5.3% on a yearly basis in January to fall short of the market expectation of 5.5% and hurt the AUD due to Australia's tight economic ties to China. Furthermore, reports of the U.S. planning to postpone the Trump-Xi summit to the end of April further weighed on the trade-sensitive AUD.
On the other hand, the greenback outperformed its rivals after spending the first half of the week under pressure and dragged the pair lower. The US Dollar Index, which slumped to a 10-day low of 96.39 yesterday, climbed above the 96.50 handle and was last seen adding 0.33% on the day at 96.80.
Despite the greenback strength, however, the pair pulled away from daily lows in the last couple of hours as the latest headlines on China-U.S. trade conflict suggesting that Chinese negotiators were looking to secure a trade deal before President Xi travelled to the U.S. improved the market sentiment.
Technical levels to consider
AUD/USD
Trends:Daily SMA20: 0.7105
Daily SMA50: 0.7136
Daily SMA100: 0.7161
Daily SMA200: 0.7232
Levels:
Previous Daily High: 0.7099
Previous Daily Low: 0.7049
Previous Weekly High: 0.7118
Previous Weekly Low: 0.7002
Previous Monthly High: 0.7285
Previous Monthly Low: 0.7053
Daily Fibonacci 38.2%: 0.708
Daily Fibonacci 61.8%: 0.7068
Daily Pivot Point S1: 0.7062
Daily Pivot Point S2: 0.7031
Daily Pivot Point S3: 0.7012
Daily Pivot Point R1: 0.7112
Daily Pivot Point R2: 0.7131
Daily Pivot Point R3: 0.7162
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