- US-China trade optimism helped AUD/USD to add to this week’s strong gains.
- Surging pound weighed on the USD, which provided an additional boost.
- Investors look forward to US retail sales data for some meaningful impetus.
The AUD/USD pair was seen oscillating in a range, comfortably above the 0.6900 handle and consolidated recent strong gains to 4-1/2 month tops.
The pair built on this week's solid bounce from the 100-day SMA support near the 0.6800 round-figure mark and gained some follow-through traction for the third consecutive session on Friday amid renewed US-China trade optimism.
Renewed trade optimism underpinned the aussie
A Bloomberg News report on Thursday indicated that the US has reached a “phase-one” trade deal in principle with China, which now averts the planned US tariffs on around $160 billion worth of Chinese goods on December 15.
Adding to this, the US negotiators have also offered to reduce existing tariffs on about $375 billion by 50%. The latest developments led to a fresh wave of the global risk-on trade and provided a strong boost to the China-proxy aussie.
This coupled with some renewed weakness surrounding the US dollar, primarily on the back of a strong upsurge in the British pound, remained supportive of the pair's positive momentum to the highest level since July 26.
Given the pair's upsurge of around 140 pips over the past three trading sessions, bulls took some breather amid slightly overbought conditions and look forward to the release of the US monthly retail sales data for a fresh impetus.
Technical levels to watch
|Today last price||0.6925|
|Today Daily Change||0.0015|
|Today Daily Change %||0.22|
|Today daily open||0.691|
|Previous Daily High||0.6913|
|Previous Daily Low||0.6866|
|Previous Weekly High||0.6863|
|Previous Weekly Low||0.6762|
|Previous Monthly High||0.6929|
|Previous Monthly Low||0.6754|
|Daily Fibonacci 38.2%||0.6895|
|Daily Fibonacci 61.8%||0.6884|
|Daily Pivot Point S1||0.6879|
|Daily Pivot Point S2||0.6849|
|Daily Pivot Point S3||0.6832|
|Daily Pivot Point R1||0.6927|
|Daily Pivot Point R2||0.6944|
|Daily Pivot Point R3||0.6974|
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