AUD/USD retreats from over 1-week tops, holds above 0.6900 handle

The post-FOMC USD bearish pressure seems to have receded and exerts some pressure.
The latest US-China trade optimism underpins Aussie and might help limit the downside.

Haresh Menghani FXStreet

The AUD/USD pair failed to capitalize on the Asian session uptick to over one-week tops and is currently placed in the neutral territory, around the 0.6920-25 region.

With investors still digesting the latest dovish shift by the FOMC, the US Dollar pushed a little higher at the start of the European trading session and was seen as one of the key factors exerting some pressure in the last hour or so.

It is worth recalling that the Fed on Wednesday clearly indicated that it remains ready to cut interest rates later this year to support economic growth, which prompted some aggressive USD selling over the past 24-hours or so.

Meanwhile, the latest optimism over a possible resolution of the prolonged US-China trade disputes continued lending some support to the China-proxy Australian Dollar and might help limit any meaningful downside.

Hence, the focus now shifts to the upcoming meeting between the US President Donald Trump and his Chinese counterpart Xi next week on the sidelines of the G20 summit in Japan.

In the meantime, Friday's US economic docket - featuring the flash manufacturing PMI and existing home sales data will now be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6922
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	0.6922

Trends
Daily SMA20	0.6931
Daily SMA50	0.6984
Daily SMA100	0.7048
Daily SMA200	0.711

Levels
Previous Daily High	0.6936
Previous Daily Low	0.6877
Previous Weekly High	0.7009
Previous Weekly Low	0.6861
Previous Monthly High	0.7062
Previous Monthly Low	0.6862
Daily Fibonacci 38.2%	0.6914
Daily Fibonacci 61.8%	0.69
Daily Pivot Point S1	0.6887
Daily Pivot Point S2	0.6853
Daily Pivot Point S3	0.6828
Daily Pivot Point R1	0.6946
Daily Pivot Point R2	0.6971
Daily Pivot Point R3	0.7006

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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