AUD/USD Current price: 0.7085
- AUD/USD up on lackluster dollar's demand, solid Wall Street's gains.
- US-China trade talks continue, Sec. Mnuchin says more work needs to be done.
The AUD/USD pair settled at around 0.7085 Friday, up for the day and the week, although below the 0.7100 figure. Lackluster dollar's demand and the good performance of US equities underpinned the pair at the end of the week, although the Aussie remained out of market's favor, suffering a similar syndrome as the EUR, with soft local economic developments making it unattractive. The pair tumbled Thursday on news that Chinese authorities were considering a delay in Trump Xi Jinping meeting, later confirmed by US Treasury Secretary Steven Mnuchin who said that a summit between the two nations' leaders would not take place in March, as more work needs to be done. By the end of the week, however, Chinese Vice Premier Liu He spoke to US representatives Mnuchin and Lighthizer over the phone, and things looked a bit more encouraging. There's no data scheduled in Australia at the beginning of the week.
The AUD/USD pair's latest recovery seems corrective, as the pair advanced after falling in the previous three weeks. Furthermore, the daily chart shows that it met selling interest multiple times around a flat 20 SMA, now around the mentioned 0.7100 figure. The 100 DMA lacks directional strength around 0.7160 while the 200 DMA extends its slump, over 100 pips above the current level and maintaining its downward slope. The Momentum indicator maintains its downward slope after failing to enter positive ground while the RSI indicator consolidates at around 47, all of it indicating that the risk of additional declines is still big. In the shorter term, and according to the 4 hours chart, the pair is trapped between the 20 and 100 SMA, while technical indicators hold within positive levels without clear directional strength, a picture that can switch to bullish on a clear break higher.
Support levels: 0.7040 0.7000 0.6965
Resistance levels: 0.7100 0.7135 0.7180
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.