- AUD/USD adds to the overnight strong positive move of around 85 pips.
- The momentum seemed rather unaffected by a modest USD rebound.
- Bulls even shrugged off persistent uncertainty over US-China trade deal.
The buying interest around the Australian dollar picked up some pace in the last hour and pushed the AUD/USD pair to fresh one-month tops, closer to the 0.6900 handle.
The pair finally broke out of its late Asian/early European session consolidation phase and built on the previous session’s strong upsurge of around 85 pips, which was further fueled by dovish sounding FOMC monetary policy statement.
The bid tone surrounding the China-proxy aussie seemed rather unaffected by persistent uncertainty over a phase one trade deal ahead of the December 15 deadline for the new US tariffs on around $156 billion worth of Chinese imports.
Bulls even shrugged off a modest US dollar rebound from four-month tops, rather took cues from improving global risk sentiment, which tends to drive flows towards perceived riskier currencies – including the Australian dollar.
Apart from the mentioned factors, possibilities of some follow-through technical buying, above the previous monthly swing highs resistance near the 0.6860-65 region, might have further collaborated to the pair’s ongoing positive move.
A sustained move beyond the 0.6900 handle might be seen as a fresh trigger for bullish traders and set the stage for an extension of the pair’s bullish trajectory further towards late October/early-November highs near the 0.6930 region.
Moving ahead, Thursday’s US economic docket, featuring the release of Producer Price Index (PPI), might influence the USD price dynamics and produce some short-term trading opportunities during the early North-American session.
Technical levels to watch
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