AUD/USD remains on the defensive below 0.6900 handle

  • Strong follow-through USD buying on Tuesday kept a lid on the post-RBA positive move.
  • The prevalent cautious mood further benefitted the USD’s relative safe-haven status.
  • The downside seemed limited amid growing optimism about a US-China trade deal.

The AUD/USD pair extended the overnight pullback from the 0.6925-30 supply zone and is currently placed near the lower end of a one-week-old trading range.
As investors looked past Tuesday's not so dovish RBA decision, a strong follow-through pickup in the US Dollar demand kept a lid on the pair's attempted intraday positive move, rather prompted some fresh selling at higher levels.

Trade optimism might help limit the downside

The already stronger Greenback got an additional boost after a survey on the US service sector – ISM Non-manufacturing PMI – rose to 54.7 in October and showed that business sentiment improved from a three-year low in September.
The pair finally settled with modest daily gains and witnessed some follow-through weakness on Wednesday amid the prevalent cautious mood, which tends to benefit the USD's relative safe-haven status against its Australian counterpart.
However, growing optimism over a possible US-China trade deal later this month continued lending some support to the China-proxy Aussie and helped limit deeper losses, helping the pair to hold just above the 0.6875 horizontal support.
Hence, it will be prudent to wait for a sustained break through the mentioned support before confirming that the recent bounce from multi-year lows has run out of the steam and positioning for any further near-term depreciating move.
In absence of any major market-moving economic releases from the US, a scheduled speech by the Chicago Fed President Charles Evans will be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch


Today last price 0.6888
Today Daily Change -0.0006
Today Daily Change % -0.09
Today daily open 0.6894
Daily SMA20 0.6832
Daily SMA50 0.6804
Daily SMA100 0.685
Daily SMA200 0.6953
Previous Daily High 0.6929
Previous Daily Low 0.686
Previous Weekly High 0.693
Previous Weekly Low 0.681
Previous Monthly High 0.693
Previous Monthly Low 0.667
Daily Fibonacci 38.2% 0.6903
Daily Fibonacci 61.8% 0.6886
Daily Pivot Point S1 0.686
Daily Pivot Point S2 0.6825
Daily Pivot Point S3 0.6791
Daily Pivot Point R1 0.6929
Daily Pivot Point R2 0.6963
Daily Pivot Point R3 0.6998



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