AUD/USD consolidates strong gains, heads for the highest close in a month


  • AUD/USD soars above 0.6800 as the DXY slides toward 97.50. 
  • Key events: RBA Lowe speech, Chinese data and Brexit headlines.

The AUD/USD pair finally broke decisively above 0.6800 on the back of a slide of the US Dollar across the board. It peaked at the beginning of the American session at 0.6832, the highest level since September 18. Over the last hours, it has been consolidating significant daily gains, moving between 0.6830 and 0.6815. 

The Brexit deal boosted equity markets earlier today and also the AUD/USD. Over the last hours, the optimism faded and Wall Street pulled back but the pair remained around daily highs, holding firm to the 70-pip daily gain, the best performance in months. 

Data from the US did not help the Greenback on Thursday. Industrial production dropped 0.4%, more than the expected 0.2% decline, housing starts tumbled 9.4% in September, pulling back from the highest level in 12 years; and initial jobless claims rose to 214K in line with expectations. 

Brexit developments were the key driver on Thursday following the deal between the UK and the European Union.  Growing concerns about the outcome at the UK Parliament limited optimism. 

Headlines from the Brexit drama could continue to weigh on market sentiment. On Friday, Reserve Bank of Australia Governor Lowe will deliver a speech and critical Chinese economic data is due (retail sales, industrial output and growth). 

Bullish outlook reinforced 

The close above 0.6800 in the AUD/USD signs more gains ahead and a potential test of the next barrier at 0.6850, above then comes September highs at 0.6890/95. On the flip side, 0.6800 has become a relevant support level followed then by 0.6760 (20-day moving average).

 

AUD/USD

Overview
Today last price 0.6823
Today Daily Change 0.0064
Today Daily Change % 0.95
Today daily open 0.6759
 
Trends
Daily SMA20 0.6754
Daily SMA50 0.6778
Daily SMA100 0.6861
Daily SMA200 0.6974
 
Levels
Previous Daily High 0.6766
Previous Daily Low 0.672
Previous Weekly High 0.6811
Previous Weekly Low 0.6704
Previous Monthly High 0.6895
Previous Monthly Low 0.6687
Daily Fibonacci 38.2% 0.6748
Daily Fibonacci 61.8% 0.6738
Daily Pivot Point S1 0.673
Daily Pivot Point S2 0.6702
Daily Pivot Point S3 0.6684
Daily Pivot Point R1 0.6776
Daily Pivot Point R2 0.6794
Daily Pivot Point R3 0.6822

 

 

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