- Positive trade-related headlines provided a goodish lift on Thursday.
- Conflicting reports kept a lid on any further gains beyond 0.6900 mark.
The AUD/USD pair held on to its weaker tone through the early European session on Friday, albeit has still managed to hold above one-week lows set in the previous session.
The pair on Thursday staged a goodish intraday bounce and jumped back above the 0.6900 handle in reaction to positive trade-related development, wherein China and the United States agreed to roll back tariffs on each others’ goods.
Focus remains on trade developments
However, other reports suggested that the subject of rolling back tariffs faced fierce internal opposition in the White House and raised scepticism about a trade deal, eventually capping gains for the China-proxy Australian Dollar.
The conflicting headlines led to a slightly softer risk tone on the last trading day of the week and turned out to be one of the key factors exerting some downward pressure on perceived riskier currencies – like the Aussie.
Meanwhile, the anti-risk flow led to a modest pullback in the US Treasury bond yields and undermined the US Dollar demand, which extended some support to the major and helped limit deeper losses, at least for now.
Moving ahead, Friday’s US economic docket – the release of preliminary Michigan Consumer Sentiment Index for November – might provide some short-term trading impetus later during the early North-American session.
Technical levels to watch
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