AUD/USD seeing relief gains above 0.71

• The Aussie is peeking above 0.71 after Tuesday saw a mild recovery against the Greenback.
• With data thin on the calendar for the mid-week, trade headlines will be a major driving force behind the AUD.

The AUD/USD is testing just north of the 0.71 level as markets gear up for Wednesday, and the Aussie is enjoying a temporary reprieve from USD strength as buyers try to extend a bullish recovery from the fresh 2018  bottom near 0.7040 that hit early this week.

It’s been a relatively steady week for the Antipodeans, and a brief break from US Dollar pressures is seeing the AUD catch a mild bounceback, and the mid-week sees little high-impact data on the economic calendar, and Pacific traders can expect to continue enjoying a moderate break from recent volatility, assuming headlines surrounding trade, particular the US-China trade war, remain subdued.

Late Tuesday sees Westpac’s Consumer Confidence survey for October at 23:30 GMT; the indicator last printed at -3% as Australian consumers remain sensitive to trade headlines and economic data from China, where a steepening economic slowdown thanks to the US-Sino trade war could see confidence wane further for the Australian continent, with much of their trade and growth figures tied closely to the Chinese economy.

AUD/USD levels to watch

The AUD/USD is leaning towards the bullish side in sedate markets, and as FXStreet’s own Valeria Bednarik noted: “the pair offers a positive technical stance according to readings in the 4 hours chart, as it’s currently advancing above a now flat 20 SMA, while technical indicators advance within positive levels, now at their highest for this month.  Furthermore, the pair is also above the 23.6% retracement of the latest daily slump at around 0.7086, with the 38.2% retracement of the same slide at 0.7115,  with gains beyond this last opening doors for a steeper recovery.”

Support levels: 0.7085 0.7040 0.7010  

Resistance levels: 0.7115 0.7150 0.7190