AUD/USD analysis: at key inflection point

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7569

Relief about the US-China trade war helped the Aussie bounce.
AUD/USD underpinned in the US session by higher oil, gold prices.

It was a win-win day for the Aussie, with strong equities at the beginning of the day and recovering commodities during the second half of it pushing the AUD/USD pair to 0.7573, its highest in almost a month. The commodity-linked currency benefited from headlines indicating that the US and China put the trade war "on hold," as both economies won't be imposing tariffs to each other, at least for now, while both economies agreed to reduce the US trade deficit with China. There were no more details on the matter but was enough to trigger risk-appetite across the financial world. The upcoming Asian session will see no relevant macroeconomic releases, and in fact is quite a light week for Australia, which could end up benefiting the AUD, despite the dollar retains its latest strength against other rivals. The pair is currently trading a couple of pips above the 38.2% retracement of its latest weekly slump, and presents a bullish short-term stance in the 4 hours chart, as the price is also well above its 20 and 100 SMA, while technical indicators entered positive territory, now losing partially its upward momentum, but far from changing course. The current level is key and if it is clearly broken, the recovery can extend up to 0.7660, the 61.8% retracement of the mentioned decline.

Support levels: 0.7520 0.7470 0.7435

Resistance levels: 0.7590 0.7625 0.7660

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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