AUD/USD inches higher above 0.7050 despite USD strength

Renewed trade optimism helps antipodeans gather strength against its rivals.
US Dollar Index clings to daily gains above the 97 mark.
The Chicago Fed's National Activity Index fails to trigger a market reaction.

Eren Sengezer FXStreet

The AUD/USD pair gained traction in the last hour and rose to a fresh daily high of 0.7057 supported by the latest headlines surrounding the U.S.-China trade conflict. As of writing, the pair was trading a couple of pips below its session highs, adding 0.2% on a daily basis.

Citing a source familiar with the matter, the South China Morning Post reported that U.S. officials including Treasury Secretary Mnuchin and Trade Representative Lighthizer were set to travel to China to meet Vice-Premier Liu He for the first round of face-to-face talks since the G20 summit.

Meanwhile, the data published by the Chicago Fed showed that the National Activity Index improved to -0.02 but fell short of analysts' estimate of 0.1. Nevertheless, ahead of this week's crucial PMI and durable goods orders data from the U.S., which could have a direct impact on the Federal Reserve's policy outlook, investors didn't pay any mind to this reading and the US Dollar Index was last up 0.15% on the day at 97.22.

There won't be any macroeconomic data releases from Australia on Tuesday. Christopher Ken, Assistant Governor at the Reserve Bank of Australia (RBA), is scheduled to deliver a speech in the early trading hours of the Asian session.

Technical levels to consider

AUD/USD

Overview
Today last price	0.7056
Today Daily Change	0.0016
Today Daily Change %	0.23
Today daily open	0.704

Trends
Daily SMA20	0.6998
Daily SMA50	0.6953
Daily SMA100	0.7018
Daily SMA200	0.7091

Levels
Previous Daily High	0.7082
Previous Daily Low	0.7037
Previous Weekly High	0.7082
Previous Weekly Low	0.6996
Previous Monthly High	0.7026
Previous Monthly Low	0.6831
Daily Fibonacci 38.2%	0.7054
Daily Fibonacci 61.8%	0.7065
Daily Pivot Point S1	0.7024
Daily Pivot Point S2	0.7008
Daily Pivot Point S3	0.6979
Daily Pivot Point R1	0.7069
Daily Pivot Point R2	0.7098
Daily Pivot Point R3	0.7114

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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