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AUD/USD struggles to gain traction amid USD strength, trades around 0.6760

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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

AUD/USD

OVERVIEW
Today last price 0.6761
Today Daily Change 0.0010
Today Daily Change % 0.15
Today daily open 0.6751
TRENDS
Daily SMA20 0.6808
Daily SMA50 0.6824
Daily SMA100 0.6887
Daily SMA200 0.6998
LEVELS
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
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