AUD/USD Analysis: Encouraging news coming from China, backed the Aussie

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6864

Positive US-China trade relationship headlines kept the Aussie afloat.
AUD/USD downward correction didn’t change the short-term bullish bias.

The AUD/USD pair peaked for the day at 0.6879, its highest since mid-September. Commodity-linked currencies out-stood this Monday, being the best performers against the greenback despite weaker oil and gold prices. In the case of the Aussie, the People Bank of China’s decision to leave rates unchanged at 4.2% lend support, as well as comments from US President Trump. Mid-US afternoon, Trump stated that the trade deal with China was “coming along great,” adding that he hopes to sign a deal with China at the Chile APEC summit, scheduled for next November. There are no macroeconomic releases scheduled in Australia this Tuesday.

AUD/USD short-term technical outlook

The AUD/USD pair retreated from the mentioned high but hold on to modest gains ahead of the Asian opening, trading around 0.6865. In the 4-hour chart, technical indicators retreated from extreme overbought readings, the Momentum heading sharply lower within positive levels, and the RSI currently at around 71. Furthermore, the 20 SMA maintains its bullish slope below the current level and above the larger ones, suggesting limited selling interest around the pair.

Support levels: 0.6850 0.6820 0.6795

Resistance levels: 0.6900 0.9630 0.6960

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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