AUD/USD jumps to fresh session tops, further beyond mid-0.7200s post-US data

Haresh Menghani FXStreet

• Renewed US-China trade optimism prompts some fresh buying.
• Dismal US economic data adds to the USD weakness and remained supportive.

The AUD/USD pair quickly reversed a mid-European session dip to 0.7225 area and surged to fresh session tops in the last hour.

The latest leg of sudden pickup followed headlines that White House trade adviser Peter Navarro - a famous China hawk, has been excluded from the Xi Jinping-Donald Trump dinner in Buenos Aires on December 1.

Exclusion of a key figure behind the US-China trade war indicated that both sides wanted to make progress on the dispute at the summit and prompted some aggressive short-covering move around the China-proxy Australian Dollar.

The positive momentum was further supported by some renewed US Dollar selling amid easing risk-aversion trade, as depicted by strong gains across European equity markets, and the prevalent positive tone around commodity space, which tends to underpin demand for commodity-linked currencies - like the Aussie.

The USD selling pressure remained unabated after today’s disappointing release of US durable goods orders data and initial weekly jobless claims and kept pushing the pair higher through the early North-American session.

Technical levels to watch

Any subsequent up-move is likely to confront some fresh supply near the 0.7275-80 region, above which the pair seems all set to aim towards surpassing the 0.7300 handle. On the flip side, the 0.7225-20 region now becomes an immediate support to defend, which if broken might turn the pair vulnerable to slide back towards challenging the 0.7200 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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