AUD/USD struggles to gain traction amid USD strength, trades around 0.6760
- Renewed optimism surrounding the United States (US) – China trade talks boost the AUD.
- US Dollar Index stays above the 99 handles to limit the pair’s gains.
- Coming up: Second-quarter gross domestic product (GDP) data from the US.
The AUD/USD pair lost 40 pips on Wednesday pressured by the broad-based USD strength and touched its lowest level in three weeks at 0.6740. Although the Greenback preserves its strength ahead of key macroeconomic data releases from the United States (US), the pair seems to be posting modest recovery gains. As of writing, the pair was up 0.2% on the day at 0.6765.
AUD capitalizes on renewed trade optimism
Heightened optimism about the US and China making forwards progress in trade talks in October seems to be providing a boost to trade-sensitive antipodeans such as the Aussie. Earlier today, Chinese Commerce Ministry Spokesman Gao told reporters that the US and China were in close contact to prepare for the high-level talks that will take place in Washington next month. “Sides are preparing for making progress for trade negotiations,” Gao added.
On the other hand, the heavy selling pressure surrounding the major European currencies continues to help the Greenback outperform its rivals. Ahead of the US Bureau of Economic Analysis’ final estimate of the second-quarter gross domestic product (GDP) growth, which is expected to remain steady at 2% on a yearly basis, the US Dollar Index is up 0.07% on the day at 99.07, keeping the pair’s gains for the moment.
Goods trade balance, wholesale inventories, and pending home sales data from the US will be published later in the session as well. The Australian economic docket won’t be featuring any significant data releases in the remainder of the week.
Technical levels to watch for
|Today last price||0.6761|
|Today Daily Change||0.0010|
|Today Daily Change %||0.15|
|Today daily open||0.6751|
|Previous Daily High||0.6804|
|Previous Daily Low||0.6738|
|Previous Weekly High||0.6885|
|Previous Weekly Low||0.6759|
|Previous Monthly High||0.6869|
|Previous Monthly Low||0.6676|
|Daily Fibonacci 38.2%||0.6763|
|Daily Fibonacci 61.8%||0.6779|
|Daily Pivot Point S1||0.6725|
|Daily Pivot Point S2||0.6698|
|Daily Pivot Point S3||0.6659|
|Daily Pivot Point R1||0.6791|
|Daily Pivot Point R2||0.683|
|Daily Pivot Point R3||0.6857|