AUD/USD spikes beyond mid-0.6800s, snapping four days of losing streak amid renewed trade optimism

  • A fresh wave of global risk-on mood triggers the initial leg of recovery.
  • Trump’s positive trade-related comments provide an additional boost.

The AUD/USD pair built on its steady intraday recovery from multi-month lows and spiked to fresh session tops, around the 0.6865-70 region in the last hour.

The ECB President Mario Draghi's dovish remarks in Sintra earlier this Tuesday led to an intraday turnaround in the global risk sentiment, which extended some support to perceived riskier currencies - like the Aussie and led the initial leg of the rebound. 

The recovery move picked up the pace during the early North-American session in reaction to some renewed trade optimism after the US President Donald Trump said that he will have an extended meeting with his Chinese counterpart at the G20 summit. 

This was followed by Chinese state media report that President Xi agrees to talk with Trump next week, which raised prospects for a possible resolution of the prolonged US-China trade disputes and provided a strong lift to the China-proxy Australian Dollar.

Adding to this, possibilities of some short-term trading stops being triggered on a sustained break through a one-week-old descending trend-channel formation on hourly charts seems have further aggravated move, helping the pair to snap four consecutive days of losing streak.

However, it would be prudent to wait for strong follow-through recovery to see if the up-move is actually backed by some genuine buying or is solely led by some short-covering as the focus now shifts to Wednesday's FOMC monetary policy decision.

Technical levels to watch


Today last price 0.6865
Today Daily Change 0.0013
Today Daily Change % 0.19
Today daily open 0.6852
Daily SMA20 0.693
Daily SMA50 0.6998
Daily SMA100 0.7058
Daily SMA200 0.7114
Previous Daily High 0.6885
Previous Daily Low 0.6848
Previous Weekly High 0.7009
Previous Weekly Low 0.6861
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6862
Daily Fibonacci 61.8% 0.6871
Daily Pivot Point S1 0.6838
Daily Pivot Point S2 0.6825
Daily Pivot Point S3 0.6801
Daily Pivot Point R1 0.6875
Daily Pivot Point R2 0.6899
Daily Pivot Point R3 0.6912



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hits two-month lows amid USD strength

EUR/USD has pared its gains that followed upbeat preliminary PMIs for Germany came out above expectations, pointing to a recovery. The USD is advancing amid fears of the coronavirus.


GBP/USD drops below 1.31 amid USD strength, fails to sustain PMI gains

GBP/USD is trading below  1.31 after hitting a fresh high of 1.3172. The UK Manufacturing PMI beat with 49.8 and Services PMI with 52.9. The USD is gaining ground across the board.


Cryptos: Bears take over and draw a bloody moon

Despite appearances, Bitcoin is the asset with the best risk/benefit ratio. The current falls are adjusted to the ranges of the previous rise. Downward momentum expires in the first half of February.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

USD/JPY drops to two-week lows near 109.30

The USD/JPY pair reversed its direction during the American trading hours as the risk-off atmosphere allowed the JPY to find demand as a safe-haven.