AUD/USD Analysis: Encouraging news coming from China, backed the Aussie

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.6864

Positive US-China trade relationship headlines kept the Aussie afloat.
AUD/USD downward correction didn’t change the short-term bullish bias.

The AUD/USD pair peaked for the day at 0.6879, its highest since mid-September. Commodity-linked currencies out-stood this Monday, being the best performers against the greenback despite weaker oil and gold prices. In the case of the Aussie, the People Bank of China’s decision to leave rates unchanged at 4.2% lend support, as well as comments from US President Trump. Mid-US afternoon, Trump stated that the trade deal with China was “coming along great,” adding that he hopes to sign a deal with China at the Chile APEC summit, scheduled for next November. There are no macroeconomic releases scheduled in Australia this Tuesday.

AUD/USD short-term technical outlook

The AUD/USD pair retreated from the mentioned high but hold on to modest gains ahead of the Asian opening, trading around 0.6865. In the 4-hour chart, technical indicators retreated from extreme overbought readings, the Momentum heading sharply lower within positive levels, and the RSI currently at around 71. Furthermore, the 20 SMA maintains its bullish slope below the current level and above the larger ones, suggesting limited selling interest around the pair.

Support levels: 0.6850 0.6820 0.6795

Resistance levels: 0.6900 0.9630 0.6960

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD trims gains, reclaims 1.1600 and beyond

Following an earlier drop to yearly lows around 1.1530, EUR/USD now manages to recoup part of the ground lost and reclaim the area above 1.1600 the figure in the latter part of the NA session on Tuesday. Meanwhile, the pair’s marked retracement comes in response to the unabate march norht in the US Dollar, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.