- China and the US reportedly have agreed to keep yuan exchange rate stable.
- US Dollar Index rose to fresh weekly highs above 97.70 on Friday.
- AUD/USD remains on track to post weekly losses.
After testing the 0.68 handle during the Asian session on Friday, the AUD/USD pair staged a technical recovery and has gone into a consolidation phase in the 0.6820/30 region in the second half of the day. As of writing, the pair was up 0.15% on the day at 0.6828.
Trade optimism supports antipodeans
In the absence of significant macroeconomic data releases, the pair struggles to set its next short-term direction but continued to react to headlines surrounding the United States (US)-China trade dispute.
Earlier in the day, the Chinese news outlet South China Morning Post reported that the United States (US) and China have agreed to keep the yuan exchange rate stable as part of the trade deal. Additionally, Reuters reported that China was planning to ask the US to remove tariffs in exchange for additional agricultural imports to help antipodeans stay resilient against the Greenback.
Meanwhile, the only data from the US on Friday revealed that the Univesity of Michigan's Consumer Sentiment Index in its final reading improved to 95.5 in October from 93.2 in September and helped the US Dollar Index advance to a fresh weekly high of 97.81. As of writing, the index was up 0.12% on the day at 97.78.
Ahead of Wednesday's inflation report from Australia, developments surrounding the US-China trade conflict are likely to continue to drive the pair's action.
Technical levels to watch for
|Today last price||0.6827|
|Today Daily Change||0.0010|
|Today Daily Change %||0.15|
|Today daily open||0.6817|
|Previous Daily High||0.6858|
|Previous Daily Low||0.681|
|Previous Weekly High||0.6858|
|Previous Weekly Low||0.672|
|Previous Monthly High||0.6895|
|Previous Monthly Low||0.6687|
|Daily Fibonacci 38.2%||0.6828|
|Daily Fibonacci 61.8%||0.684|
|Daily Pivot Point S1||0.6799|
|Daily Pivot Point S2||0.678|
|Daily Pivot Point S3||0.6751|
|Daily Pivot Point R1||0.6847|
|Daily Pivot Point R2||0.6876|
|Daily Pivot Point R3||0.6895|
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.