AUD/USD retraces Monday's gains, trades around 0.6850 on USD recovery

US Dollar Index climbs to 98.50 area on Tuesday.
Renewed trade optimism helps AUD stay resilient against its rivals.
Chinese official says they are hopeful an agreement with the US will be reached.

Eren Sengezer FXStreet

The AUD/USD pair posted its highest daily close in a month at 0.6870 on Monday but struggled to continue to push higher. As of writing, the pair, which tested the 0.6850 handle in the last hour, was trading at 0.6860, down 0.08% on a daily basis.

The Greenback spent the second half of the previous week under strong selling pressure and the US Dollar Index (DXY) slumped to its lowest level since early August at 97.14. In the absence of significant macroeconomic data releases on Tuesday, the USD staged a technical rebound and the DXY was up 0.15% on the day near 98.50.

Trade headlines support the Aussie

Despite the USD recovery, hopes of the United States and China coming to terms on trade before causing the conflict to escalate any further helps trade-sensitive antipodeans stay resilient against their rivals.

Earlier in the day, China’s Vice Foreign Minister Le Yucheng said that they had achieved progress in the latest trade talks with the US and noted that they were hopeful an agreement could be reached. “As long as we respect each other, there are no problems that cannot be resolved by China and the US,” the official added.

There won't be any macroeconomic data releases from Australia on Wednesday and Reserve Bank of Australia's Assistant Governor Christopher Kent will be delivering a speech.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.6862
Today Daily Change	-0.0004
Today Daily Change %	-0.06
Today daily open	0.6866

Trends
Daily SMA20	0.6765
Daily SMA50	0.6782
Daily SMA100	0.6858
Daily SMA200	0.6969

Levels
Previous Daily High	0.6881
Previous Daily Low	0.684
Previous Weekly High	0.6858
Previous Weekly Low	0.672
Previous Monthly High	0.6895
Previous Monthly Low	0.6687
Daily Fibonacci 38.2%	0.6865
Daily Fibonacci 61.8%	0.6856
Daily Pivot Point S1	0.6844
Daily Pivot Point S2	0.6821
Daily Pivot Point S3	0.6803
Daily Pivot Point R1	0.6885
Daily Pivot Point R2	0.6903
Daily Pivot Point R3	0.6926

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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