AUD/USD clings to gains near multi-day tops, comfortably above 0.6900 handle

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  • AUD/USD added to Friday’s goodish recovery move from multi-week lows.
  • A subdued USD demand/trade optimism/risk-on mood remained supportive.

The AUD/USD pair edged higher for the second consecutive session and climbed further beyond the 0.6900 handle on the first day of a new trading week.

The pair gained some follow-through traction on Monday and added to the previous session’s goodish recovery move from multi-week lows. Against the backdrop of easing geopolitical tensions in the Middle East, the optimism over the phase-one US-China trade deal remained supportive of the prevailing risk-on mood and benefitted perceived riskier currencies – like the aussie.

Aussie supported by a combination of factors

On the other hand, the US dollar nursed the previous session’s modest losses triggered by softer US monthly jobs report, which showed that the US economy added 145K jobs in December as compared to 164K expected. Moreover, average hourly earnings also fell short of market expectations and came in to show a modest 0.1% during the reported month.

This coupled with the fact that the pair managed to again find acceptance above the very important 200-day SMA and the 0.6900 round-figure mark further seemed to have contributed to the pair’s ongoing positive momentum. It, however, remains to be seen if the bulls are able to capitalize on the momentum or opt to lighten their bets amid absent relevant market-moving US economic data.

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