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AUD/USD sticks to gains near 2-week tops, 0.70 mark remains in sight post-US data

  • The latest disappointment from the US economic data caps the attempted USD bounce.
  • Renewed US-China optimism fails to impress the bulls or provide any meaningful impetus.
  • Sustained move beyond the 0.70 needed to confirm any follow-through appreciating move.

The AUD/USD pair maintained its strong bid tone through the early North-American session and had a rather muted reaction to the latest US macro releases.

With investors looking past the overnight not so dovish comments by influential FOMC members and despite a follow-through US Dollar recovery, the pair regained traction and climbed to over two-week tops on Wednesday. 

The positive momentum faltered ahead of the key 0.70 psychological mark and failed to capitalize on the US Treasury Secretary Steven Mnuchin's comments, saying that a US-China trade deal is about 90% complete.

Meanwhile, the USD trimmed a part of its early gains following the latest disappointment from the US economic data - showing that durable goods orders dropped 1.3% in May as compared to a fall of 0.1% expected. 

Adding to this, the previous month's readings were also revised lower from the already weaker prints, which kept a lid on the greenback's attempted recovery and remained supportive of the bid tone surrounding the major.

Despite the positive factors, the pair seemed to lack any strong bullish conviction as investors preferred to stay on the sidelines ahead of the crucial Trump-Xi meeting on the sidelines of G20 summit later this week. 

Hence, it would be prudent to wait for a strong follow-through momentum beyond the 0.70 handle before traders start positioning for any further near-term appreciating move beyond monthly highs, around the 0.7020 region.

Technical levels to watch

AUD/USD

Overview
Today last price0.6986
Today Daily Change0.0026
Today Daily Change %0.37
Today daily open0.696
 
Trends
Daily SMA200.6935
Daily SMA500.697
Daily SMA1000.7039
Daily SMA2000.7106
Levels
Previous Daily High0.6979
Previous Daily Low0.6942
Previous Weekly High0.6938
Previous Weekly Low0.6831
Previous Monthly High0.7062
Previous Monthly Low0.6862
Daily Fibonacci 38.2%0.6956
Daily Fibonacci 61.8%0.6965
Daily Pivot Point S10.6942
Daily Pivot Point S20.6923
Daily Pivot Point S30.6904
Daily Pivot Point R10.6979
Daily Pivot Point R20.6998
Daily Pivot Point R30.7017

Author

Haresh Menghani

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

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