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: Trapped in a bull flag on 4H chart

EUR/USD's pullback from Oct.21's high of 1.1179 to 1.1106 has taken the shape of a bull flag on the 4-hour chart. A bull flag represents a pause which usually refreshes higher. A breakout would open the doors for 1.1320. A 4-hour close above 1.1134 would confirm a flag breakout.

EUR/USD News

GBP/USD: Modestly changed to 1.2915 amid fears of UK election

Despite mounting speculations of a general election in the UK, GBP/USD clings to 1.2915 during early Thursday morning in Asia. No major British data highlights the US economic calendar, trade/Brexit news as the key catalysts.

GBP/USD News

USD/JPY declines to 108.60 amid fresh risk aversion, all eyes on the ECB

With the recent uncertainty surrounding the UK’s politics crossing wires, USD/JPY steps back from the previous rise to 108.60 as Tokyo opens for Thursday’s trading session.

USD/JPY News

Gold drops to $1,491 despite downbeat catalysts from Asia, Brexit uncertainty

Despite economic challenges from Asia and uncertainty surrounding the Brexit, Gold prices step back to $1,491 amid Asian session on Thursday. An active economic calendar, including ECB, will be the key.

Gold News

ECB Preview: Draghi's defense of his legacy may drag EUR/USD down

"The ECB is ready to do whatever it takes to preserve the euro." These famous words by Mario Draghi, President of the European Central Bank, are the centerpiece of his legacy.

Read more

Forex MAJORS

Cryptocurrencies

Signatures