- AUD/USD soars and approaches 0.7200 as US dollar tumbles across the board.
- Equity prices and commodities extend gains as the US proposes new round of talks with China.
The AUD/USD pair rose more than 50 pips during the last hours amid a sharp slide of the US dollar across the board. The media reported that the United States is proposing a new round of trade talks with China in the short-term and boosted risk appetite.
Equity price around the globe rose further and commodity prices jumped, adding more strength to the AUD/USD rally. The pair climbed from 0.7120 to 0.7180, reaching the highest level since last Thursday. Previously the pair was already higher of the day, boosted after a lower-than-expected US PPI reading for August that pushed the greenback modestly to the downside.
AUD/USD broke to the upside, breaking with a 3-day consolidation and recovered ground after falling yesterday to the lowest intraday level since February 2016 at 0.7083. It is having the best performance in three weeks.
AUD/USD Levels to watch
If the Aussie rises further, resistance levels might be located at 0.7185 followed by 0.7210 and 0.7235 (Aug 24 low / Sep 4 high). On the flip side, the immediate support now is 0.7145 and then the upper limit of the recent range at 0.7425/30 and then 0.7095/0.7100.
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