AUD/USD holds above 0.71 despite USD strength

  • Consumer confidence improves in February in Australia.
  • U.S.-China trade optimism boost antipodeans.
  • US Dollar Index recovers to 97 area on Wednesday.

Despite the broad-based USD strength on Wednesday, the AUD/USD pair is clinging to its daily gains and looks to close the day modestly higher above the 0.71 mark. As of writing, the pair was up 0.22% on the day at 0.7110.

Earlier in the day, the Westpac announced that the Consumer Confidence rose 4.3% in February in Australia following January's 4.7% decline and provided the initial boost to the AUD. Moreover, the decisive upsurge seen in the NZD/USD pair following the RBNZ's policy statement, which adopted an optimistic tone regarding the near-term economic outlook, helped the positively-correlated AUD/USD push higher in the day.

Although the greenback started to gather strength in the second half of the day and forced the pair to pull away from its weekly high of 0.7135, the AUD limited its losses as the latest headlines on the U.S.-China trade conflict supported antipodean currencies. In an interview with Fox News, White House Press Secretary Sarah Sanders said that President Trump was weighing the possibilities regarding the March 1 deadline and reiterated that they saw progress in the latest talks. 

Later in the session, the monthly budget statement from the U.S. will be looked upon for fresh impetus. In the early trading hours of the Asian session on Thursday, the Melbourne Institute will publish the Consumer Inflation Expectations.

Technical levels to consider

The pair could face the initial resistance at 0.7130/35 (50-DMA/daily high) ahead of 0.7160 (20-DMA) and 0.7240 (Feb. 6 high). On the downside, supports are located at 0.7090 (daily low), 0.7050 (Feb. 12 low) and 0.7000 (psychological level).

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

Latest Forex News

Editors’ Picks

EUR/USD struggling at the lows ahead of US GDP

EUR/USD is trading in the low 1.1100s, consolidating its losses. Markets are stalling ahead of the all-important US GDP report which carries high expectations. Some suspect a "sell the fact" response in reaction to an OK number.


GBP/USD recaptures 1.2900 amid the Brexit impasse, ahead of US GDP

GBP/USD is trading slightly above 1.2900, recovering the lost ground after hitting two-month lows. The Brexit impasse weighs as the main parties have not made progress. The anticipation to US GDP limits movements.


USD/JPY oscillates in a range above mid-111.00s, key US GDP report awaited

The USD/JPY pair failed to capitalize on the intraday bounce and quickly retreated around 15-20 pips from daily tops touched during the Asian session.


US First Quarter GDP Preview: Reasons to be cheerful

US economic growth forecast to be stable in the first quarter. Improved consumer attitudes and retail sales give reason for optimism. Labor market key to economic growth.

Read more

Gold climbs to 1-1/2 week tops, back above $1280 level ahead of US GDP

Gold edged higher on the last trading day of the week and jumped back above $1280 level, just above over one-week tops set in the previous session.

Gold News