AUD/USD stages modest recovery, trades near 0.7060

US-China trade headlines help AUD rebound.
US Dollar Index clings to daily gains, looks to snap 4-day losing streak.

The AUD/USD pair erased a large part of this week's gains on Thursday and dropped to a daily low of 0.7040 before staging a technical recovery in the NA session. As of writing, the pair was trading at 0.7063, losing 0.4% on a daily basis.

Earlier today, the data from China showed that industrial production expanded by 5.3% on a yearly basis in January to fall short of the market expectation of 5.5% and hurt the AUD due to Australia's tight economic ties to China. Furthermore, reports of the U.S. planning to postpone the Trump-Xi summit to the end of April further weighed on the trade-sensitive AUD.

On the other hand, the greenback outperformed its rivals after spending the first half of the week under pressure and dragged the pair lower. The US Dollar Index, which slumped to a 10-day low of 96.39 yesterday, climbed above the 96.50 handle and was last seen adding 0.33% on the day at 96.80.

Despite the greenback strength, however, the pair pulled away from daily lows in the last couple of hours as the latest headlines on China-U.S. trade conflict suggesting that Chinese negotiators were looking to secure a trade deal before President Xi travelled to the U.S. improved the market sentiment.

Technical levels to consider

AUD/USD

Trends:
    Daily SMA20: 0.7105
    Daily SMA50: 0.7136
    Daily SMA100: 0.7161
    Daily SMA200: 0.7232
Levels:
    Previous Daily High: 0.7099
    Previous Daily Low: 0.7049
    Previous Weekly High: 0.7118
    Previous Weekly Low: 0.7002
    Previous Monthly High: 0.7285
    Previous Monthly Low: 0.7053
    Daily Fibonacci 38.2%: 0.708
    Daily Fibonacci 61.8%: 0.7068
    Daily Pivot Point S1: 0.7062
    Daily Pivot Point S2: 0.7031
    Daily Pivot Point S3: 0.7012
    Daily Pivot Point R1: 0.7112
    Daily Pivot Point R2: 0.7131
    Daily Pivot Point R3: 0.7162

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.