AUD/USD capitalizes on positive US-China trade headlines, trades near mid-0.67s

China is reportedly open to a partial trade deal despite blacklisting of tech companies.
Consumer confidence in Australia continues to weaken in October.
US Dollar Index fluctuates near the 99 handle ahead of key macro events.

Eren Sengezer FXStreet

The AUD/USD pair closed the day virtually unchanged at 0.6730 on Wednesday and stayed relatively quiet during the Asian trading hours despite the disappointing consumer sentiment data from Australia. With the latest headlines surrounding the United States (US)-China trade conflict bringing back optimism to markets, the pair gained traction and rose toward the 0.6750 area. As of writing, the pair was up 0.25% on the day at 0.6745.

Earlier on Wednesday, the Westpac Consumer Confidence released by the Faculty of Economics and Commerce Melbourne Institute in Australia slumped to -5.5% in October from -1.7% in September.

The market focus stays on trade headlines

On the other hand, citing a Chinese official familiar with talks, Bloomberg reported that China was open to making a partial trade deal with the United States despite Trump administration's decision to blacklist numerous Chinese technology firms. Additionally, according to the Financial Times, China has offered to buy $10 million worth of extra soybeans from the US with an aim to ease the trade war. Both of these headlines allowed the market sentiment to recover on Wednesday and helped trade-sensitive antipodeans find demand.

Later in the day, the Federal Open Market Committee (FOMC) will be releasing the minutes of its September meeting, at which the Committee decided to cut the policy rate by 25 basis points. Ahead of this critical event, the US Dollar Index continues to move sideways near the 99 handle, allowing the trade headlines to dominate the market action.

Technical levels to consider

AUD/USD

Overview
Today last price	0.6746
Today Daily Change	0.0019
Today Daily Change %	0.28
Today daily open	0.6727

Trends
Daily SMA20	0.6785
Daily SMA50	0.6781
Daily SMA100	0.687
Daily SMA200	0.6984

Levels
Previous Daily High	0.6758
Previous Daily Low	0.671
Previous Weekly High	0.6776
Previous Weekly Low	0.667
Previous Monthly High	0.6895
Previous Monthly Low	0.6687
Daily Fibonacci 38.2%	0.6728
Daily Fibonacci 61.8%	0.674
Daily Pivot Point S1	0.6705
Daily Pivot Point S2	0.6684
Daily Pivot Point S3	0.6657
Daily Pivot Point R1	0.6753
Daily Pivot Point R2	0.678
Daily Pivot Point R3	0.6801

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.