AUD/USD consolidates below 0.6900 handle, focus on trade developments

AUD/USD consolidates the overnight gains to over one-month tops.
The USD nursed post-FOMC losses and continues to lend some support.
Persistent uncertainty over a US-China trade deal might cap the upside.

Haresh Menghani FXStreet

The AUD/USD pair held steady near the 0.6880-85 region through the early European session on Thursday and consolidated the overnight upsurge to over one-month tops.

Having shown some resilience near 100-day SMA, the pair on Wednesday caught some aggressive bids and the intraday positive move got an additional boost on the back a dovish assessment of the latest FOMC monetary policy statement.

Bulls await fresh trade headlines

The Fed, as was widely expected, left interest rates unchanged and indicated that rates would remain on hold. However, the fact that the Fed reiterated its accommodative stance triggered a broad-based US dollar selloff and remained supportive.

The momentum took along some short-term trading stops being place near the 0.6860-65 horizontal zone and further collaborated towards accelerating the bullish rally, albeit persistent US-China trader uncertainty kept a lid on the pair.

It is worth reporting that the US President Donald Trump is yet to decide on the December 15 tariffs, though optimism remains on the back of news that negotiators were laying the groundwork for a preliminary deal to halt the trade war.

However, bulls preferred to wait for a confirmation before placing any fresh bullish bets around the China-proxy Australian dollar, which might further contribute towards capping additional gains for the major, at least for now.

Moving ahead, market participants now look forward to the release of US Producer Price Index (PPI), which might produce some short-term trading opportunities later during the early North-American session on Thursday.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6882
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	0.6883

Trends
Daily SMA20	0.681
Daily SMA50	0.682
Daily SMA100	0.6807
Daily SMA200	0.6912

Levels
Previous Daily High	0.689
Previous Daily Low	0.6804
Previous Weekly High	0.6863
Previous Weekly Low	0.6762
Previous Monthly High	0.6929
Previous Monthly Low	0.6754
Daily Fibonacci 38.2%	0.6857
Daily Fibonacci 61.8%	0.6837
Daily Pivot Point S1	0.6828
Daily Pivot Point S2	0.6773
Daily Pivot Point S3	0.6742
Daily Pivot Point R1	0.6914
Daily Pivot Point R2	0.6945
Daily Pivot Point R3	0.7

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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