AUD/USD flirting with session tops near 0.7160

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  • The Aussie moves higher on USD-selling, near 0.7170.
  • US-China trade talks fuelling the sentiment in the high-betas.
  • Australian job figures next on tap on Thursday.

The persistent selling mood keeps hurting the greenback and is now pushing AUD/USD to fresh tops near 0.7160.

AUD/USD in new 2-week highs

Spot is up for the third session in a row at the beginning of the week, tracking the better tone in the risk-associated universe in response to the rising hopes on a US-China trade talks.

In the meantime, the pair appears to have met solid contention in so far monthly lows in the mid-0.7000s, while the current upper end of the range is expected to meet a tough resistance, as in this area converge the 21-, 5- and 100-day SMA.

Moving forward, the Aussie Dollar will be in centre stage later in the week in light of the publication of the RBA minutes (Tuesday), quarterly figures for Wage Price Index (Wednesday) and the always-relevant labour market figures for the month of January (Thursday).

What to look for around AUD

The Aussie Dollar is taking advantage from the constructive bias in the riskier assets and the commodity-bloc, as market participants keep their hopes high on a potential US-China trade agreement sooner rather than later. However, a more serious rally in AUD appears unsustainable for the time being following the renewed neutral stance from the RBA and prospects of a slower pace in the economic growth. It is worth recalling that the central bank cut its growth projections on the potential slowdown in China, the correction in the domestic house sector and potential trade jitters.

AUD/USD levels to watch

At the moment the pair is up 0.19% at 0.7153 and a breakout of 0.7162 (100-day SMA) would aim for 0.7235 (high Jan.11) and then 0.7273 (200-day SMA). On the downside, the next support lines up at 0.7116 (10-day SMA) seconded by 0.7075 (low Jan.25) and finally 0.7054 (low Feb.12).

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