“¢ Renewed USD weakness helps build on the overnight modest bounce.
“¢ Bulls seemed rather unaffected by the latest US-China trade development.
“¢ A sustained move beyond 0.7100 handle needed to confirm additional gains.
The AUD/USD pair regained positive traction on the last trading day of the week and built on the overnight bounce from an intraday low level of 0.7041.
The US Dollar failed to preserve the overnight modest gains and remained on the defensive on Friday in wake of some renewed weakness in the US Treasury bond yields, which turned out to be one of the key factors driving the pair higher for the fourth session in the previous five.
Meanwhile, the latest development on the US-China trade front, wherein reports suggested that China is considering to delay the Trump-Xi meeting to at least April, did little to dent the prevalent bid tone surrounding the China-proxy Australian Dollar and hinder the pair’s ongoing up-move.
It, however, remains to be seen if the pair is able to build on the positive momentum or once again meet with some fresh supply/faces rejection near the 0.7100 handle as market participants now look forward to the second-tier US economic releases for some fresh impetus.
Today’s US economic docket features the release of Empire state manufacturing index, industrial production and capacity utilization data, which followed by Prelim UoM Consumer Sentiment and JOLTS Job Openings might produce some meaningful trading opportunities on the last day of the week.
Technical levels to watch
On a sustained move beyond the mentioned handle, the pair is likely to accelerate the momentum towards 0.7130 intermediate resistance en-route the 0.7160-65 supply zone before eventually darting towards reclaiming the 0.7200 round figure mark. On the flip side, the 0.7060 level now seems to act as immediate support, which if broken might turn the pair vulnerable to aim towards challenging the key 0.70 psychological mark.
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