- AUD/USD has hit six-day highs above the 200-day Ma at 0.6903.
- Trade optimism is boding well for the Aussie dollar.
AUD/USD is gaining ground on trade optimism.
The pair is currently trading at 0.6906, having hit a high of 0.6912 soon before press time. That was the highest level since Dec. 13.
Notably, the Aussie dollar has hit six-day highs above the 200-day average at 0.6903.
The currency picked up a bid near 0.6892 in early Asia on news that China will be reducing tariffs on 850 US items starting from Jan. 1.
Further, China’s ministry said that tariffs on some technology products will be reduced from July next year.
The recent easing of US-China trade tensions has brightened prospects for the Australian economy and forced markets to scale back the dovish Reserve Bank of Australia (RBA) expectations.
The odds of a February rate cut fell below 50% following last week’s upbeat Aussie jobs report.
While the path of least resistance appears to be on the higher side, big gains may remain elusive if the US Durable Goods data, due at 13:30 GMT today, blows past expectations.
Technical levels
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