AUD/USD bounces off lows, turns neutral on China's trade-related comments
- Disappointing Aussie macro data continues exerting some downward pressure.
- The USD gains some follow-through traction despite the US yield curve inversion.
- Optimistic trade-related remarks from China provided a minor boost in the last hour.
The AUD/USD pair quickly recovered around 15-pips in the last hour and is currently placed in the neutral territory, around the 0.6730-35 region.
The pair extended this week's rejection slide from the vicinity of the 0.6800 handle and lost some additional ground on Thursday following the disappointing release of Australian private sector business investment data, showing capital expenditure fell 0.5% in three months to June.
The pair touched to an intraday low level of 0.6717 in reaction to dismal data and was further pressurized by a modest US Dollar uptick, which gained some follow-through traction through the early European session on Thursday despite the recent inversion of the US bond yield curve.
China’s trade remarks provided a minor lift
The pair, however, managed to attract some buying at lower levels and the latest leg of a sudden pickup came after the Chinese Commerce Ministry spokesman Gao's comments on the US-China trade spat, showing willing to resolve the issue via a calm attitude.
Adding to the optimistic comments, the spokesman hoped that the US cancels planned additional tariffs to avoid an escalation in the trade war and provided a modest lift to the China-proxy Australian Dollar, albeit bulls lacked any strong conviction ahead of Thursday's important US macro data.
The US economic docket highlights the release of revised US Q2 GDP growth figures, due later during the early North-American session, which might influence the USD price dynamics and contribute towards producing some meaningful trading opportunities.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
