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AUD/USD eases from tops, still well bid near mid-0.6900s

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AUD/USD eases from tops, still well bid near mid-0.6900s

  • The recent US-China trade optimism continues to underpin the Aussie.
  • The USD remains on the defensive amid increasing Fed rate cut bets. 
  • The upside seems limited ahead of Trump-Xi meeting later this week. 

The AUD/USD pair remained well bid through the early European session and remained well within the striking distance of near two-week tops set earlier this Monday.

The pair built on last week’s goodish bounce from multi-month lows, with a combination of supporting factors fueling the ongoing positive momentum for the fifth consecutive session.

The China-proxy Australian Dollar continues to benefit from the recent optimism over a possible resolution to the prolonged trade disputes between the world’s two largest economies, especially after the US President Donald Trump last week said that he will have an extended meeting with his Chinese counterpart at the G20 summit.

The bullish sentiment got an additional boost on Monday after the Reserve Bank of Australia (RBA) Governor Philip Lowe refrained from providing any hints about the central bank’s future policy moves and said that the macro growth is still reasonable, albeit acknowledged downside risks to the global economic outlook.

On the other hand, the US Dollar continues to be weighed down by a more dovish shift by the FOMC, clearly indicating that it remains ready to cut interest rates by the end of this year to support economic growth and combat subdued inflationary pressure, and remained supportive of the bid tone surrounding the major.

However, in absence of any fresh fundamental triggers – in terms of any major market moving economic releases, the upside is likely to remain capped as traders now seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of the highly anticipated Trump-Xi meeting later this week.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6949
Today Daily Change 0.0023
Today Daily Change % 0.33
Today daily open 0.6926
Trends
Daily SMA20 0.6931
Daily SMA50 0.6979
Daily SMA100 0.7044
Daily SMA200 0.7109
Levels
Previous Daily High 0.6938
Previous Daily Low 0.6903
Previous Weekly High 0.6938
Previous Weekly Low 0.6831
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6925
Daily Fibonacci 61.8% 0.6916
Daily Pivot Point S1 0.6907
Daily Pivot Point S2 0.6887
Daily Pivot Point S3 0.6871
Daily Pivot Point R1 0.6942
Daily Pivot Point R2 0.6958
Daily Pivot Point R3 0.6977
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