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.
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
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.
