AUD/USD jumps 30 pips as US considers currency pact with China


  • AUD/USD added more than 30 pips to hit a session high of 0.6756. 
  • Risk assets have picked up a bid in response to talk of the US-China currency pact.

The bid tone around the AUD strengthening, pushing the AUD/USD pair higher by 30 pips on reports that the US is considering a currency pact with China as part of a partial trade deal.

As of writing, the pair is trading at 0.6746, having high a high of 0.6756 soon before press time.

The risk sentiment improved after a Bloomberg report said the White House is looking at rolling out a previously agreed currency pact with China as part of an early partial deal that could pave the way for a suspension of the planned tariff increase next week.

The currency pact would be followed by more negotiations on core issues like intellectual property and forced technology transfers, the people familiar with the matter told Bloomberg.

The news put a bid under the AUD, a proxy for China, at lows near 0.6720. The futures on the S&P 500 have also recovered losses. The index futures had dropped 1% in the early Asian trading hours on reports of US-China trade-talk fallout.

Apart from the currency pact headline, the Huawei news may be pushing the AUD and other risky assets higher.

The Trump administration is planning to issue licenses allowing some American companies to supply nonsensitive goods to the Chinese telecom giant Huawei. That could help cool trade tensions.

Technical levels

AUD/USD

Overview
Today last price 0.6746
Today Daily Change 0.0023
Today Daily Change % 0.34
Today daily open 0.6723
 
Trends
Daily SMA20 0.6778
Daily SMA50 0.6779
Daily SMA100 0.6868
Daily SMA200 0.6983
 
Levels
Previous Daily High 0.675
Previous Daily Low 0.6704
Previous Weekly High 0.6776
Previous Weekly Low 0.667
Previous Monthly High 0.6895
Previous Monthly Low 0.6687
Daily Fibonacci 38.2% 0.6722
Daily Fibonacci 61.8% 0.6733
Daily Pivot Point S1 0.6701
Daily Pivot Point S2 0.6679
Daily Pivot Point S3 0.6655
Daily Pivot Point R1 0.6748
Daily Pivot Point R2 0.6772
Daily Pivot Point R3 0.6794

 

 

 

 

 

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 nears 1.1100 ahead of the close

The EUR/USD pair is at daily lows after US and Chinese authorities confirmed phase one on a trade deal agreed. Some tariffs will be rolled back as China agreed on “massive purchases” of US goods, according to President Trump.

EUR/USD News

GBP/USD extends corrective decline to 1.3330 region

The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.

GBP/USD News

Financial Big Brother is coming, but Bitcoin will remain

Central banks move quickly looking to oversight all payments. Greece could impose sanctions if digital means are not used in at least 30% of payments. Once inside the crypto ecosystem, governments have little capacity for financial censorship.

Read more

Gold: Steadily climbs to session tops, upside seems limited

Gold extended the overnight rejection slide from 100-day SMA resistance and witnessed some follow-through selling during the Asian session on Friday.

Gold News

GBP/USD extends corrective decline to 1.3330 region

The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.

GBP/USD News

Forex MAJORS

Cryptocurrencies

Signatures