AUD/USD clings to gains near multi-week tops, just below 0.6900 handle

  • Trump’s decision to delay additional tariffs on Chinese products provided a strong boost.
  • Surging US bond yields continue to underpin the USD and kept a lid on any further up-move.
  • Traders now look forward to the ECB decision/US CPI figure for short-term opportunities.

The AUD/USD pair held on to its strong intraday gains through the early European session on Thursday and is currently placed at multi-week tops, around the 0.6885 region.
After the previous session's late pullback, the pair managed to catch some fresh bids on Thursday and remained well supported by encouraging US-China trade developments. The US President Donald Trump announced to delay the decision to impose an extra 5% tariffs on $250 billion worth of Chinese goods by two weeks to Oct. 15, which eventually underpinned the China-proxy Australian Dollar.

US-China trade optimism continues to underpin

The move came after China on Wednesday offered to buy more US agricultural products and continued boosting the global risk sentiment, which was evident from a bullish trading sentiment around equity markets and further benefitted perceived riskier currencies - like the Aussie.
Meanwhile, the risk-on mood allowed the US Treasury bond yields to extend its recent positive momentum, pushing the US 10-year yield to one-month highs, which extended some support to the US Dollar and turned out to be the only factor keeping a lid on any strong follow-through up-move, at least for the time being.
It will now be interesting to see if the pair is able to capitalize on the momentum or runs into some fresh supply at higher levels as investors start repositioning for Thursday’s ECB monetary policy decision. This coupled with the release of the US consumer inflation figures will influence the USD price dynamics and contribute toward producing some meaningful trading opportunities.

Technical levels to watch


Today last price 0.6884
Today Daily Change 0.0021
Today Daily Change % 0.31
Today daily open 0.6863
Daily SMA20 0.6782
Daily SMA50 0.6858
Daily SMA100 0.6907
Daily SMA200 0.7017
Previous Daily High 0.6885
Previous Daily Low 0.6848
Previous Weekly High 0.6862
Previous Weekly Low 0.6687
Previous Monthly High 0.6869
Previous Monthly Low 0.6676
Daily Fibonacci 38.2% 0.6871
Daily Fibonacci 61.8% 0.6862
Daily Pivot Point S1 0.6846
Daily Pivot Point S2 0.6828
Daily Pivot Point S3 0.6809
Daily Pivot Point R1 0.6883
Daily Pivot Point R2 0.6902
Daily Pivot Point R3 0.692



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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD: Buyers and sellers jostle around 0.6600 as coronavirus keeps the driver’s seat

AUD/USD carries the New York session’s downbeat sentiment forward while taking rounds to 0.6600 at the start of the Asian session on Wednesday. While the coronavirus-led risk-off keeps the risk barometer under pressure, weakness in the US dollar restricted the pair’s losses.


USD/JPY consolidates losses but bears keep the baton amid coronavirus fears

USD/JPY consolidates losses to 110.20 amid the initial Asian session on Wednesday. That said, the pair portrayed the broad risk-off, led-by coronavirus fears, while declining for the third day in a row during the previous day.


Dollar domination set to continue, with or without coronavirus fears

The coronavirus-related fall in US bond yields has been weighing on the US dollar. Nevertheless – and despite worries coming from Markit's PMIs – the greenback is set to gain more ground.

Read more

Gold: Pares early losses, still in the red below $1650 level

Gold extended previous day's intraday retracement slide from multi-year tops and witnessed some follow-through long-unwinding trade on Tuesday.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info