- Expectations of an end to a bitter trade war between the US and China fuelled the Aussie.
- Traders still remain cautious ahead of the US employment statistics to surpass 0.7130 resistance.
The Australian Dollar (AUD) is near to 0.7120 marks versus the US Dollar (USD) during early Friday trading. The Aussie pair is on the bids as recent comments from the US and Chinese policymakers show brighter chances of the much-awaited trade deal to arrive soon. In addition to developments surrounding the trade accord, investors may also closely observe the US jobs report considering disappointments from February month labor data.
China’s state media reports recently confirm optimism at the US-China trade front. The Xinhua news daily reported that President Xi Jinping and Vice Premier Liu He both are positive about the progress over the trade negotiations. The news report also quoted Mr. He saying new consensus over the trade talks has been reached.
Earlier during the day, the US President Donald Trump was also quoted praising the progress over trade negotiations.
It should also be noted that the February month AIG performance construction index for Australia rose past 43.8 prior to 57.2 and provided extra strength to the Aussie bulls.
While positive news for its largest customer China pleases AUD buyers, welcome developments such as the trade accord also cut off the risk aversion and fuels the AUD/USD pair further towards the north.
However, investors may now await March month employment statistics from the US for fresh impulse as February month numbers weren’t quite good. Forecasts suggest the headline non-farm payrolls revisit three-month average by flashing 180K versus the previous month disappointment of 20K. Though, the unemployment rate and average hourly earnings aren’t expected to deviate from 3.8% and 3.4% respective priors.
AUD/USD Technical Analysis
Unless clearing 0.7130 immediate resistance that has been limiting the pair’s upside since month-start, chances of its pullback to 0.7100 and 0.7050 can’t be denied.
Should prices rally past-0.7130, the 100-day simple moving average (SMA) and a six-week-old descending trend-line can challenge buyers around 0.7150. Additionally, a break of 0.7150 can fuel the quote in the direction to 200-day SMA level of 0.7200 with 0.7180 being an intermediate halt.
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