- It was a positive start tot he week for the Aussie that extended its European gains in the US session, climbing from 0.7107 to a high of 0.7148, a touch through the 38.2% Fibo at 0.7145 while the greenback continues to struggle.
AUD/USD continues to take its cues from the performance of the Chinese Yuan which remains stubbornly on the defensive vs the greenback while bulls continue to attack dips but fail to cross the line through 6.93. However, financial markets were generally stable overnight, giving rise to a bid in industrial metals, gold and the high betas despite weakness in Asian markets yesterday.
Focus on the greenback
So long as the USD continues to underperform on the back of trade tensions and now data with a soft US retail sales headline, the antipodes can enjoy the ride for the meantime. For the day ahead, we have the RBA minutes and Chinese CPI ahead of US data in IP, JOLTS and housing stats.
AUD/USD levels
Valeria Bednarik, Chief Analysts at FXStreet explained that the short-term technical picture offers a mixed outlook:
“In the 4 hours chart, the price is above a bullish 20 SMA but below bearish 100 and 200 SMA, with the distance between moving averages shrinking and the price trapped in-between, a sign that clearer definitions are not far away. Technical indicators in the mentioned chart retreated from daily highs, but hold within positive ground, limiting chances of a downward extension, at least as long as the price holds above the 0.7080/90 price zone.”
Share
