AUD/USD retreats from highs to 0.6770 after China comments on US tariffs


  • China says US decision to impose 10% tariffs violates Osaka meeting consensus.
  • Employment in Australia rises more than expected in July. 
  • US Dollar Index pulls away from 98 handle as US T-bond yields turn south.

The AUD/USD pair gained traction on the back of upbeat labour market data from Australia during the Asian trading hours and rose to a daily high of 0.6790. However, with the latest comments from China on the trade dispute with the US, the AUD came under modest selling pressure and the pair was last seen trading at 0.6770, still adding 0.33% on a daily basis.

Strong jobs data boost AUD

The data published by the Australian Bureau of Statistics on Thursday revealed that employment increased by 41,100 in July following June's 2,400 decline and beat analysts estimate of 14,000 by a wide margin. Further details of the report showed that the unemployment rate remained unchanged 5.2% and the labour force participation rate ticked up to 66.1%.

Commenting on the Trump administration's decision to start imposing an additional 10% tariff on some Chinese imports starting September, China said that the US action was violating the consensus reached at the G20 meeting in Osaka and reiterated that they will have to take countermeasures against the US tariffs. 

With these comments triggering a fresh flight-to-safety, the 10-year US Treasury bond yield extended its decline and was last down 2.7% on the day, allowing the pair to cling to its daily gains by weighing on the Greenback. At the moment, the US Dollar Index, which tested the 98 handle earlier in the day, is down 0.1% on the day at 97.86.

Later in the day, retail sales, industrial production, and weekly jobless claims data from the US will be looked upon for fresh impetus.

Technical levels to watch for

AUD/USD

Overview
Today last price 0.6772
Today Daily Change 0.0024
Today Daily Change % 0.36
Today daily open 0.6748
 
Trends
Daily SMA20 0.6868
Daily SMA50 0.6926
Daily SMA100 0.6975
Daily SMA200 0.7065
Levels
Previous Daily High 0.6809
Previous Daily Low 0.6736
Previous Weekly High 0.6822
Previous Weekly Low 0.6676
Previous Monthly High 0.7082
Previous Monthly Low 0.6832
Daily Fibonacci 38.2% 0.6764
Daily Fibonacci 61.8% 0.6781
Daily Pivot Point S1 0.6719
Daily Pivot Point S2 0.669
Daily Pivot Point S3 0.6645
Daily Pivot Point R1 0.6793
Daily Pivot Point R2 0.6838
Daily Pivot Point R3 0.6867

 

 

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