- Aussie lifted by improving risk sentiment and higher oil, copper prices.
- Uptick in S&P 500 futures and fresh USD weakness also underpin.
- Focus on US macro data after the Australian jobs report disappointed.
The AUD/USD pair erased earlier losses and swung back on the bids in the European session, now printing daily tops near 0.6935 region amid an improvement in the risk sentiment and broad US dollar selling.
The spot stages a comeback from fresh four and a half month lows of 0.6894 reached in the Asian trades after the Australian Unemployment Rate ticked higher to 5.2% and raised the bets for an RBA rate cut as soon as next month. The Aussie was further pressured by escalating US-China trade spat, as the US President Trump signed an executive order on Wednesday, banning the Chinese technology company Huawei.
Over the last hour, the AUD bulls saw fresh signs of life, as the risk sentiment somewhat improved, as reflected by the uptick in the S &P 500 futures and ongoing recovery in oil and copper prices. Moreover, the prices drew support from fresh US dollar weakness across its main competitors, as Treasury yields continued to remain under pressure.
Attention now turns towards a raft of relevant US macro-economic releases, including the jobless claims, Philly Fed manufacturing index and housing data, for fresh trading impetus. In the meantime, the risk trends and USD dynamics will continue to influence the major.
AUD/USD Technical Levels
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