AUD/USD nearing two-week highs on positive flows

• The Aussie is getting dragged higher by an upward swing in broader market sentiment.
• Thursday sees thin data for the Asian session, but durable goods and jobless claims await in the US session.

The AUD/USD is bumping into the 0.7450 region as broader market sentiment swings upwards following positive trade talks between the US and the European Union, and risk assets across the board are enjoying a resurgence.

Wednesday saw early whipping on the AUD/USD after Australian CPI figures missed expectations, taking the pair down to 0.7390, but markets turned broadly risk-on after the US;s President Trump and the EU’s Juncker made a joint statement where the two sides agreed to trade concessions in order to avert an all-out trade war between the two sides, bringing risk appetite back into the fold and allowing Aussie bulls an opportunity to push the AUD near two-week highs, though action still remains capped by July’s high at 0.7480.

Thursday brings Australia’s quarterly Import and Export Price Indexes at 01:30 GMT, with the Import Price Index forecast at 1.9% (previous 2.1%), while the Export Price Index is expected at 3.9% (previous 4.9%), though the low-tier indicators are unlikely to drive much action, while Thursday’s upcoming US market session will be seeing American Durable Goods orders for June (forecast 3.0%, previous -0.3%) alongside Continuing Jobless Claims (forecast 1.73 million, last 1.751 million) and Initial Jobless Claims (forecast 215 thousand, last 207 thousand), all dropping at 12:30 GMT.

AUD/USD Levels to watch

The AUD/USD is looking for a further move higher, trading above current moving averages, according to FXStreet’s Valeria Bednarik: “the pair is trading close, but below the key 0.7440/50 resistance area, gaining upward traction and biased higher according to technical readings in the 4 hours chart, as it is currently above its 100 and 200 SMA, while technical indicators accelerate their advances within positive territory, nearing their weekly highs. A steeper advance could be expected on a break above 0.7483, the highest for this July.”

Support levels: 0.7400 0.7370 0.7330      

Resistance levels: 0.7445 0.7490 0.7520