AUD/USD climbs to session tops, bulls eyeing a fresh move towards clearing 0.7100 barrier

   •  Renewed USD weakness helps build on the overnight modest bounce. 
   •  Bulls seemed rather unaffected by the latest US-China trade development.
   •  A sustained move beyond 0.7100 handle needed to confirm additional gains.

The AUD/USD pair regained positive traction on the last trading day of the week and built on the overnight bounce from an intraday low level of 0.7041.

The US Dollar failed to preserve the overnight modest gains and remained on the defensive on Friday in wake of some renewed weakness in the US Treasury bond yields, which turned out to be one of the key factors driving the pair higher for the fourth session in the previous five.

Meanwhile, the latest development on the US-China trade front, wherein reports suggested that China is considering to delay the Trump-Xi meeting to at least April, did little to dent the prevalent bid tone surrounding the China-proxy Australian Dollar and hinder the pair's ongoing up-move.

It, however, remains to be seen if the pair is able to build on the positive momentum or once again meet with some fresh supply/faces rejection near the 0.7100 handle as market participants now look forward to the second-tier US economic releases for some fresh impetus.

Today's US economic docket features the release of Empire state manufacturing index, industrial production and capacity utilization data, which followed by Prelim UoM Consumer Sentiment and JOLTS Job Openings might produce some meaningful trading opportunities on the last day of the week. 

Technical levels to watch

On a sustained move beyond the mentioned handle, the pair is likely to accelerate the momentum towards 0.7130 intermediate resistance en-route the 0.7160-65 supply zone before eventually darting towards reclaiming the 0.7200 round figure mark. On the flip side, the 0.7060 level now seems to act as immediate support, which if broken might turn the pair vulnerable to aim towards challenging the key 0.70 psychological mark.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pressures daily lows in quiet trading

Little is going on in the European session, yet no doubts, the greenback is the overall winner, trading near multi-week highs against its high-yielding rivals. EUR/USD closing to 1.1110, the yearly low.


GBP/USD bounces ahead of May's critical Brexit speech

GBP/USD jumped around 50 pips to around 1.2740 from fresh 4-month lows following news that PM May will be setting out details of a new Brexit offer in a speech later at 15:00 GMT. 


USD/JPY clings to gains above 110.00 handle, lacks follow-through

The USD/JPY pair held on to its mildly positive tone through the mid-European session on Wednesday, albeit seemed struggling to extend the momentum. After some good two-way price moves at the start of a new trading week, the pair managed to regain some traction and was supported by fading safe-haven demand amid easing US-China trade tensions.


Gold: Drops to fresh two-week lows, now seems vulnerable to test $1266 area

The occurrence of death-cross on hourly charts - wherein 50-period SMA crosses below 200-period SMA, add credence to the bearish set-up. 

Gold News

Anti-EU populism rise not priced in the EUR, European election could hit Euro

The European Union is holding its Parliamentary election next Sunday, May 26th and the impact of this political event seems to be underpriced by currency markets. 

Read more