AUD/USD consolidates above 0.69 the figure during US/Chinese signing ceremony


  • AUD/USD holds in the 0.69 handle as the US and Chinese signing ceremony takes place with no surprises.
  • Focus will now get back to the Federal Reserve and Reserve Bank of Australia.

AUD/USD is currently trading at 0.6913, the highs of the day, following a steep trip up from the lows of 0.6877 as the US/Chinese signing ceremony takes centre stage on the day. 

We have seen a bid in the Aussie which has corrected from a low in the 0.6850s where it reached 0.6919 earlier in the week due to improved risk appetite with the equity market making record highs along with a pickup in key commodity prices.

We have not heard the exact details of the trade deal between the US and China as of yet, as President Donald Trump introduces the phase one signing of the deal, speaking in general of it. However, we heard yesterday that rollbacks in tariffs will not be part of it, so it is unlikely that we can see much more upside in purely based on the deal at his stage. 

Central banks back in focus

The focus will now be back to the US economy and the Federal Reserve. It is too soon to speculate, but the Fed is tipped to hold rates throughout the year, although barring an unexpected negative shock to the economy, inflation pressures will be a thing in 2020, stemming from a positive U.S. output gap which could result in a less dovish rhetoric, potentially supporting the US dollar. However, the benign Consumer Price Index release, rates have been a little lower and the US dollar a little softer this week. 

As for the Reserve Bank of Australia, the bush fires and damage to the economy could be a catalyst to bring a rate cut forward where a cut from 0.75% to 0.50% in February would pressure the Aussie. "The RBA’s 2.8% growth forecast for 2020 seems very optimistic (we are on 2.1%, consensus 2.3%)," analysts at Westpac explained noting that "markets price only a 45% chance of the RBA cutting next month."

AUD/USD levels

AUD/USD

Overview
Today last price 0.6916
Today Daily Change 0.0012
Today Daily Change % 0.17
Today daily open 0.6904
 
Trends
Daily SMA20 0.6927
Daily SMA50 0.6869
Daily SMA100 0.6836
Daily SMA200 0.6891
 
Levels
Previous Daily High 0.691
Previous Daily Low 0.6884
Previous Weekly High 0.6959
Previous Weekly Low 0.6848
Previous Monthly High 0.7033
Previous Monthly Low 0.6762
Daily Fibonacci 38.2% 0.6894
Daily Fibonacci 61.8% 0.69
Daily Pivot Point S1 0.6889
Daily Pivot Point S2 0.6874
Daily Pivot Point S3 0.6864
Daily Pivot Point R1 0.6914
Daily Pivot Point R2 0.6925
Daily Pivot Point R3 0.694

 

 

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