AUD/USD clings to gains near 1-1/2 week tops ahead of US retail sales

AUD/USD catches some fresh bids and breaks out of its recent trading range.
US-China trade deal optimism, subdued USD demand remains supportive.
Traders look forward to the US monthly retail sales data for a fresh impetus.

Haresh Menghani FXStreet

The AUD/USD pair finally broke out of its multi-day-old trading range and jumped to 1-1/2 week tops, around the 0.6930 region in the last hour.

That signing of the much-anticipated phase one trade agreement between the world's two largest economies helped ease the recent concerns about the global growth and boosted investors’ appetite for perceived riskier assets.

Aussie supported by a combination of factors

The risk-on mood was evident from a positive mood around equity markets, which turned out to be one of the key factors that benefitted the China-proxy Australian dollar and assisted the pair to add to last week's late recovery.

The uptick could further be attributed to some technical buying above the very important 200-day SMA, which took along some short-term trading stops being placed near the 0.6920 region and accelerated the move up amid a subdued US dollar demand.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of monthly retail sales data, which should influence the USD price dynamics and produce some meaningful trading opportunities.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6926
Today Daily Change	0.0021
Today Daily Change %	0.30
Today daily open	0.6905

Trends
Daily SMA20	0.693
Daily SMA50	0.6869
Daily SMA100	0.6838
Daily SMA200	0.6889

Levels
Previous Daily High	0.6918
Previous Daily Low	0.6877
Previous Weekly High	0.6959
Previous Weekly Low	0.6848
Previous Monthly High	0.7033
Previous Monthly Low	0.6762
Daily Fibonacci 38.2%	0.6902
Daily Fibonacci 61.8%	0.6893
Daily Pivot Point S1	0.6882
Daily Pivot Point S2	0.6859
Daily Pivot Point S3	0.6841
Daily Pivot Point R1	0.6923
Daily Pivot Point R2	0.6941
Daily Pivot Point R3	0.6964

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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