AUD/USD clings to gains above 0.6750, looks to snap three-day losing streak

US Dollar Index drops to fresh two-week lows on Thursday.
Renewed trade optimism boosts the demand for the AUD.
Coming up: The Reserve Bank of Australia's (RBA) Financial Stability Review.

Eren Sengezer FXStreet

After closing the first three days of the week with losses, the AUD/USD pair staged a decisive rebound on Thursday and rose to a fresh six-day high of 0.6775 before going into a consolidation phase in the American trading hours. As of writing, the pair was up 0.67% on the day at 0.6768.

Antipodeans capitalize on trade optimism

Revived hopes of the United States (US) and China reaching a trade deal seems to be the primary driver of the pair's rally on Thursday. Several news outlets reported that sides could reach a partial trade deal that includes terms regarding Yuan valuation in exchange for suspending the US tariffs next week. Additionally, Chinese Vice Premier on Thursday said that they were willing to reach agreement on matters that both sides care about and to prevent friction from further escalation.

In the meantime, the only macroeconomic data release from the US showed that the core Consumer Price Index (CPI) in September remained unchanged at 2.4% as expected. Nevertheless, the upbeat market mood made it difficult for the Greenback to find demand and the US Dollar Index slumped to its lowest level in two weeks to help the pair preserve its bullish momentum. At the moment, the index is down 0.4% on the day at 98.71.

In the early trading hours of the Asian session on Friday, the Reserve Bank of Australia (RBA) will be releasing its Financial Stability Review. More importantly, participants will be paying close attention to headlines coming out of the US-China trade negotiations.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.6767
Today Daily Change	0.0044
Today Daily Change %	0.65
Today daily open	0.6723

Trends
Daily SMA20	0.6778
Daily SMA50	0.6779
Daily SMA100	0.6868
Daily SMA200	0.6983

Levels
Previous Daily High	0.675
Previous Daily Low	0.6704
Previous Weekly High	0.6776
Previous Weekly Low	0.667
Previous Monthly High	0.6895
Previous Monthly Low	0.6687
Daily Fibonacci 38.2%	0.6722
Daily Fibonacci 61.8%	0.6733
Daily Pivot Point S1	0.6701
Daily Pivot Point S2	0.6679
Daily Pivot Point S3	0.6655
Daily Pivot Point R1	0.6748
Daily Pivot Point R2	0.6772
Daily Pivot Point R3	0.6794

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.

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