AUD/USD climbs to session tops, further beyond 0.6900 handle


  • RBA maintains status-quo and helped regain some positive traction.
  • US-China trade optimism/subdued USD demand remained supportive.
  • Traders now look forward to the US ISM PMI for some short-term impetus.

The AUD/USD pair built on its post-RBA intraday positive move, with bulls making a fresh attempt to build on the momentum further beyond the 0.6900 handle.
 
Following the previous session's pullback from the 0.6925-30 supply zone, the pair managed to catch some fresh bids on Tuesday after the Reserve Bank of Australia's (RBA) decided to maintain status quo and leave interest rates unchanged at its November meeting.

Combination of factors remain supportive

The decision was on expected lines, though the central bank's hawkish outlook turned out to be one of the key factors that provided a goodish lift to the Aussie. The central bank's base scenario is for inflation to pick up gradually and growth to rise to around 3% in 2021.
 
Against the backdrop of renewed optimism over a possible US-China trade deal, absent dovish signals from the RBA extended some support to the China-proxy Australian Dollar and helped the pair to regain some positive traction during the Asian session on Tuesday.
 
The US Commerce Secretary Wilbur Ross on Sunday said that the licenses for American companies to export certain technology products to China’s Huawei would be issued very shortly and added to the recent indications that a trade deal could be signed later this month.
 
The uptick was further supported by a subdued US Dollar price action. However, some follow-through pickup in the US Treasury bond yields might help revive the USD demand and cap gains for the major, making it prudent to wait for a sustained move beyond the mentioned support zone.
 
Moving ahead, Tuesday's US economic docket – highlighting the release of US ISM non-manufacturing PMI – will now be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch

AUD/USD

Overview
Today last price 0.691
Today Daily Change 0.0027
Today Daily Change % 0.39
Today daily open 0.6883
 
Trends
Daily SMA20 0.6824
Daily SMA50 0.6801
Daily SMA100 0.685
Daily SMA200 0.6954
 
Levels
Previous Daily High 0.6926
Previous Daily Low 0.6876
Previous Weekly High 0.693
Previous Weekly Low 0.681
Previous Monthly High 0.693
Previous Monthly Low 0.667
Daily Fibonacci 38.2% 0.6895
Daily Fibonacci 61.8% 0.6907
Daily Pivot Point S1 0.6864
Daily Pivot Point S2 0.6845
Daily Pivot Point S3 0.6814
Daily Pivot Point R1 0.6914
Daily Pivot Point R2 0.6945
Daily Pivot Point R3 0.6964

 

 

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