• The USD continues to be weighed down by dovish Fed expectations.
• US-China trade optimism provides an additional boost to the Aussie.
• Investors now look forward to US CPI for some fresh bullish impetus.
The AUD/USD pair maintained its strong bid tone through the mid-European trading session and is currently placed at near one-month tops, around the 0.7230-35 region.
The pair built on its post-flash-crash recovery move from almost a decade low, with a combination of supporting factors fueling the positive momentum for the sixth session in the previous seven.
The US Dollar remained on the back-foot after the Fed Chair Jerome Powell’s cautious comments on Thursday clearly signalled that the Fed is in no hurry to hike rates further.
Adding to this, optimism over further progress in the US-China trade talks provided an additional boost to the China-proxy and remained supportive of the ongoing positive momentum to the highest level since Dec. 13.
The US Treasury Secretary Steven Mnuchin’s optimistic comments overnight raised prospects for a timely resolution of the US-China trade disputes and assist the pair to surge past the 50-day SMA barrier near the 0.7200 handle.
Hence, a follow-through positive momentum, led by some technical buying or (and) supported by any disappointment from today’s US consumer inflation figures, now looks a distinct possibility.
Technical levels to watch
Today Last Price: 0.723
Today Daily change: 46 pips
Today Daily change %: 0.640%
Today Daily Open: 0.7184
Previous Daily SMA20: 0.7095
Previous Daily SMA50: 0.7188
Previous Daily SMA100: 0.7178
Previous Daily SMA200: 0.7333
Previous Daily High: 0.7198
Previous Daily Low: 0.7146
Previous Weekly High: 0.7125
Previous Weekly Low: 0.6684
Previous Monthly High: 0.7394
Previous Monthly Low: 0.7014
Previous Daily Fibonacci 38.2%: 0.7178
Previous Daily Fibonacci 61.8%: 0.7166
Previous Daily Pivot Point S1: 0.7153
Previous Daily Pivot Point S2: 0.7123
Previous Daily Pivot Point S3: 0.7101
Previous Daily Pivot Point R1: 0.7206
Previous Daily Pivot Point R2: 0.7228
Previous Daily Pivot Point R3: 0.7258