AUD/USD: Off 4.5-month highs as GBP/AUD hits highest since June 2016

AUD/USD has pulled back from 4.5-month highs despite trade optimism.
GBP/AUD pair has risen to the highest level since the Brexit referendum.

Omkar Godbole FXStreet Contributor

AUD/USD is trimming gains amid a solid rise in the GBP/AUD pair.

The AUD/USD pair is currently trading at 0.6914, representing marginal gains on the day, having hit a high of 0.6939 an hour ago. That was the highest level since July 26.

The pair had jumped to 4.5-month highs on trade optimism. President Trump tweeted in the overnight trade that Washington was “very close” to a trade deal with Beijing.

Further, news hit the wires via Reuters in Asia that China has agreed to purchase $50 billion worth of US agricultural goods.

Fading trade tensions could bode well for the Australian economy and ease pressure on the Reserve Bank of Australia (RBA) to do more (RBA has cut rates three times this year). Even so, the AUD/USD pair has trimmed gains.

The pair may be feeling the pull of gravity due to GBP/AUD rally (AUD selling in GBP/AUD cross).

The GBP/AUD pair is currently trading at 1.9465, having hit a high of 1.9504 earlier today. That level was last seen in June 2016, when Britons voted to leave the European Union.

The Pound picked up a strong bid in early Asia after the exit polls predicted a landslide victory for the incumbent Prime Minister Boris Johnson.

Technical levels

AUD/USD

Overview
Today last price	0.6917
Today Daily Change	0.0007
Today Daily Change %	0.10
Today daily open	0.691

Trends
Daily SMA20	0.6816
Daily SMA50	0.6823
Daily SMA100	0.6807
Daily SMA200	0.6911

Levels
Previous Daily High	0.6913
Previous Daily Low	0.6866
Previous Weekly High	0.6863
Previous Weekly Low	0.6762
Previous Monthly High	0.6929
Previous Monthly Low	0.6754
Daily Fibonacci 38.2%	0.6895
Daily Fibonacci 61.8%	0.6884
Daily Pivot Point S1	0.6879
Daily Pivot Point S2	0.6849
Daily Pivot Point S3	0.6832
Daily Pivot Point R1	0.6927
Daily Pivot Point R2	0.6944
Daily Pivot Point R3	0.6974

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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