- The Aussie recovers amid trade optimism, solid Chinese Trade data.
- Australian bushfire crisis impact continues to weigh on the AUD.
- The US dollar trades listless ahead of the US inflation data.
AUD/USD is trying hard to extend the recovery above the 0.69 handle following a brief consolidative stint over the last hours.
The pair hit fresh two-day lows at 0.6885 in early Asia after concerns over the negative impact of the Australian bushfire crisis on the country’s consumer spending gripped the Aussie traders.
The expectations of a weaker Australian Retail Sales report increased following the warnings issued from retailers listed on the ASX, including Mosaic, that sales had seen a "significant" impact from the bushfire crisis.
However, the imminent US-China phase one trade deal signing induced optimism alongside the goodwill gestures from both the sides rescued the AUD bulls. The Aussie derived support from the upsurge in the Chinese yuan and stronger December Chinese Trade report.
The yuan rallied to five-month highs against the greenback after the USTR dropped China’s currency manipulator tag. Meanwhile, a big beat on the Chinese Exports and Imports data for December boost the upside in the local currency.
In the day ahead, the spot will continue to find some impetus from the US-China trade deal updates while a broadly subdued US dollar could help cushion the downside in the major. AUD/USD will also get influenced by the US CPI data lied up for release later today.
AUD/USD Technical levels to consider
|Today last price||0.6903|
|Today Daily Change||-0.0004|
|Today Daily Change %||-0.06|
|Today daily open||0.6905|
|Previous Daily High||0.6921|
|Previous Daily Low||0.6894|
|Previous Weekly High||0.6959|
|Previous Weekly Low||0.6848|
|Previous Monthly High||0.7033|
|Previous Monthly Low||0.6762|
|Daily Fibonacci 38.2%||0.6911|
|Daily Fibonacci 61.8%||0.6904|
|Daily Pivot Point S1||0.6892|
|Daily Pivot Point S2||0.6879|
|Daily Pivot Point S3||0.6865|
|Daily Pivot Point R1||0.692|
|Daily Pivot Point R2||0.6934|
|Daily Pivot Point R3||0.6947|
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