AUD/USD holds steady above mid-0.6800s, moves little post-US PPI


  • US-China trade optimism continues to underpin the China-proxy Aussie.
  • A goodish pickup in the USD demand kept a lid on any strong up-move.
  • US PPI figures came-in stronger-than-expected but did little to influence.

The AUD/USD pair held on to its mildly positive tone through the early North-American session and had a rather muted reaction to the latest US PPI figures.
 
The recent optimism over the resumption of the US-China trade talks in early October continued underpinning the China-proxy Australian Dollar and assisted the pair to build on last week's strong recovery move from sub-0.6700 level, or closer to multi-year lows set in August.

Stronger USD seemed to cap gains

The pair climbed to its highest since late-July, around the 0.6885 region, albeit lacked any strong follow-through amid a goodish pickup in the US Dollar demand. The ongoing upsurge in the US Treasury bond yields lifted the greenback to one-week tops and capped the major.
 
The bid tone surrounding the USD remained unabated following the release of Wednesday's stronger US data, which showed that Producer Price Index (PPI) rose 0.1% in August as compared to a flat reading expected and core PPI jumped 0.3% during the reported month from -0.1% previous.
 
The market reaction, however, remained limited as investors seemed convinced that the upward pressure seen on the core rate in August is unlikely to persist, which did little to dampen prospects for a further monetary easing by the Fed at its upcoming meeting on September 17-18.
 
Hence, it will be prudent to wait for a subsequent slide below an immediate strong support near mid-0.6800s before confirming that the recent rally of over 200-pips has already run out of the steam and positioning for any further corrective slide back towards the 0.6800 round figure mark.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6869
Today Daily Change 0.0009
Today Daily Change % 0.13
Today daily open 0.686
 
Trends
Daily SMA20 0.6776
Daily SMA50 0.6862
Daily SMA100 0.6909
Daily SMA200 0.7019
Levels
Previous Daily High 0.6871
Previous Daily Low 0.6848
Previous Weekly High 0.6862
Previous Weekly Low 0.6687
Previous Monthly High 0.6869
Previous Monthly Low 0.6676
Daily Fibonacci 38.2% 0.6857
Daily Fibonacci 61.8% 0.6862
Daily Pivot Point S1 0.6848
Daily Pivot Point S2 0.6837
Daily Pivot Point S3 0.6825
Daily Pivot Point R1 0.6871
Daily Pivot Point R2 0.6883
Daily Pivot Point R3 0.6894

 

 

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