AUD/USD tops 0.6800, nears monthly high as US eases tariffs on China
- AUD/USD has jumped above 0.6800, nearly 1% on the day.
- The move is fueled by a US announcement of easing of Chinese tariffs.
- The four-hour chart is pointing to further gains.
AUD/USD is trading above 0.6800 – matching the high levels seen last week – and nearing the levels seen in early August. The Australian dollar is enjoying optimism – the risk-on mood – to advance.
The A$ is rising alongside global stocks in response to a special announcement by the US Trade Representative Robert Lighthizer. Following a conversation with Chinese Vice Premier Liu He, the USTR has announced a delay on planned tariffs on some products. President Donald Trump previously laid out plans to impose a 10% tariff on all Chinese goods – worth around $300 billion annually – that were exempt from levies so far.
The delay is set to last until December 15th, after the Black Friday shopping event and just before Christmas. The goods include phones, computers, and shoes.
AUD/USD has broken above the 50 Simple Moving Average on the four-hour on its way up and enjoys upside momentum.
Resistance awaits at 0.6822, 0.6870, and 0.6900. Support is at 0.6780, 0.6740, and 0.6680.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
