AUD/USD finds resistance ahead of 0.71, clings to small gains in early NA session

  • Renewed trade optimism helps AUD gather strength.
  • US Dollar Index stays in tight range above 96.50.
  • Manufacturing in NY area loses momentum.

The AUD/USD pair gained traction on Friday and rose toward the 0.71 handle after losing around 30 pips on Thursday. However, with the greenback staying resilient in the day, the pair eased from its highs and was last seen trading at 0.7075, adding 0.15% on a daily basis.

Despite reports of the U.S. looking to delay the Trump-Xi summit to late April, Chinese news agency Xinhua said that sides were able to make further progress in trade negotiations following Chinese Vice Premier Liu He's phone conversations with Treasury Secretary Mnuchin and Trade Representative Lighthizer. Renewed trade optimism during the Asian session boosted the demand for antipodeans and allowed the pair to rebound following Thursday's drop.

On the other hand, the US Dollar Index, which tracks the greenback against a basket of six major currencies, is trying to extend its recovery on Friday, forcing the pair to pull away from its daily highs. Although the NY Fed's Manufacturing Index slumped to 3.7 in March to miss the market expectation of 10 by a wide margin, the DXY is up 0.06% on the day at 96.78. 

Later in the session, industrial production and the UoM Consumer Confidence Index from the U.S. will be watched closely by the market participants.

Key technical levels

The pair could face the initial support at 0.7040 (Mar. 14 low) ahead of 0.7000 (psychological level) and 0.6915 (Jan. 13 low). On the upside, resistances are located at 0.7095 (daily high/20-DMA), 0.7130 (50-DMA) and 0.7165 (Feb. 28 high).

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.

Feed news

Editors’ Picks

EUR/USD stable around 1.1300 as markets look calmer

EUR/USD continues trading around 1.1300, marginally higher on the day. Markets are calmer after the sell-off and this helps the euro stabilize and it ignored weak German GfK consumer confidence. Brexit headlines are eyed.

EUR/USD News

GBP/USD moves up after Parliament takes control

GBP/USD is holding above 1.3200 after Parliament approved holding indicative votes. The non-binding votes may put pressure on May to change tack on Brexit or may push Brexiteers to support her deal.

GBP/USD News

USD/JPY sticks to modest gains above 110.00 handle, but lacks follow-through

The USD/JPY pair regained some positive traction on Tuesday, albeit continued with its struggle to build on the momentum further beyond the 110.25 region.

USD/JPY News

Crypto News

majors

Editors’ Picks

EUR/USD stable around 1.1300 as markets look calmer

EUR/USD continues trading around 1.1300, marginally higher on the day. Markets are calmer after the sell-off and this helps the euro stabilize and it ignored weak German GfK consumer confidence. Brexit headlines are eyed.

EUR/USD News

GBP/USD moves up after Parliament takes control

GBP/USD is holding above 1.3200 after Parliament approved holding indicative votes. The non-binding votes may put pressure on May to change tack on Brexit or may push Brexiteers to support her deal.

GBP/USD News

USD/JPY sticks to modest gains above 110.00 handle, but lacks follow-through

The USD/JPY pair regained some positive traction on Tuesday, albeit continued with its struggle to build on the momentum further beyond the 110.25 region.

USD/JPY News

What currencies to buy on a US recession after the yield curve inversion?

Bond markets tend to give signals for the future. In the past, when the 3-month US Treasury yield became higher than the benchmark 10-year yield, it was an initial sign of a recession.

Read full report

US Conference Board Consumer Confidence Preview: Is sentiment enough?

The Consumer Confidence Index from the non-profit business group the Conference Board is projected to rise to 132.0 in March from 131.4 in February. 

Read full report

signatures


  •  
  •  
  •  
  •  
  •