- Bounces-off lows amid US-China trade progress, risk-on market profile.
- But upside appears capped as USD stages a comeback from post-FOMC sell-off.
- Awaits China’s Caixin manufacturing PMI and US payrolls data for fresh cues.
Having retreated from eight-week tops of 0.7296 in the overnight trades, the AUD/USD pair managed to find some fresh buyers near 0.7260 region, as the traders cheered some progress on the US-China trade front while the positive close on the Wall Street also aided the recovery in the higher-yielding Aussie.
China and U.S. trade talks summary and sound bites from two day discussions in Washington
The trade talks between the US President Trump and China’s Vice Premier Liu brought in some positives for the US agricultural sector while the two leaders agree to hold another round of talks later this month to discuss further on the March tariffs deadline.
DJIA stuck at key resistance and confluence level, but enjoys best January since 1989
Meanwhile, the dovish Fed decision continues to bolster the sentiment around the US equity markets, as an era of lower borrowing costs could return, which in turn helps keep the buoyant tone intact around the Aussie dollar.
However, the bulls could find stiff resistance once again near the 0.73 handle, as broad-based US dollar rebound could cap the upside. The greenback staged a solid comeback in the US last session, despite the decline in the Treasury yields, as markets sought to repositioning heading into the crucial US payrolls and earnings data due on the cards later today at 1330 GMT.
In the meantime, the immediate focus now remains on the Chinese Caixin manufacturing PMI report due at 0145 GMT. The manufacturing sector activity in China is expected to contract further to 49.5 in January versus 49.7 last.
AUD/USD Technical Levels
Overview:
Today Last Price: 0.7271
Today Daily change: 22 pips
Today Daily change %: 0.30%
Today Daily Open: 0.7249
Trends:
Daily SMA20: 0.7159
Daily SMA50: 0.7168
Daily SMA100: 0.7172
Daily SMA200: 0.7295
Levels:
Previous Daily High: 0.7273
Previous Daily Low: 0.7143
Previous Weekly High: 0.7185
Previous Weekly Low: 0.7076
Previous Monthly High: 0.7394
Previous Monthly Low: 0.7014
Daily Fibonacci 38.2%: 0.7223
Daily Fibonacci 61.8%: 0.7193
Daily Pivot Point S1: 0.717
Daily Pivot Point S2: 0.7092
Daily Pivot Point S3: 0.704
Daily Pivot Point R1: 0.73
Daily Pivot Point R2: 0.7352
Daily Pivot Point R3: 0.7431
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.