AUD/USD hits 2.5-week highs above 0.71

Improved risk sentiment has powered AUD/USD to 2.5-week high in Asia.
The fading US-China trade tensions and PBOC rate cut put a strong bid under risk assets.
The Fed rate outlook is likely adding to the bullish tone around the AUD/USD pair.

Omkar Godbole FXStreet Contributor

The AUD/USD pair jumped to 0.7133 in Asia - the highest level since Dec. 20.

The Aussie dollar is likely benefitting from the risk-on action in the stocks. For instance, the S&P 500 futures are currently reporting 0.4 percent gains, having rallied 3.4 percent on Friday. Meanwhile, Japan's Nikkei is reporting 2.8 percent gains.

Moreover, the risk appetite improved on Friday, after Washington and Beijing announced vice-ministerial level negotiations over trade issues. The meeting is scheduled to take place in Beijing this week.

Further, the People's Bank of China (PBOC) lowered the reserve requirement ratio for large financial institutions by a total of one percentage point.

Also, Fed's Powell, on Friday, signaled the central bank could pause interest-rate increases if the US economy weakened, strengthening the bid tone around the risk assets.

Notably, these developments could keep the equity market better bid. The Aussie, therefore, could rise further in the European and US session.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7134
    Today Daily change: 18 pips
    Today Daily change %: 0.253%
    Today Daily Open: 0.7116
Trends:
    Previous Daily SMA20: 0.7104
    Previous Daily SMA50: 0.7184
    Previous Daily SMA100: 0.7185
    Previous Daily SMA200: 0.7344
Levels:
    Previous Daily High: 0.7125
    Previous Daily Low: 0.6993
    Previous Weekly High: 0.7125
    Previous Weekly Low: 0.6684
    Previous Monthly High: 0.7394
    Previous Monthly Low: 0.7014
    Previous Daily Fibonacci 38.2%: 0.7075
    Previous Daily Fibonacci 61.8%: 0.7043
    Previous Daily Pivot Point S1: 0.7031
    Previous Daily Pivot Point S2: 0.6946
    Previous Daily Pivot Point S3: 0.6899
    Previous Daily Pivot Point R1: 0.7163
    Previous Daily Pivot Point R2: 0.721
    Previous Daily Pivot Point R3: 0.7295

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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