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AUD/USD looks to regain 0.7200 heading into a Big week

  • Unfazed by fresh US-China trade-related headlines, as broad USD softness underpins.
  • Holiday-thinned markets to exaggerate the moves, focus shifts to Australian CPI, US-China trade talks and FOMC.

The AUD/USD pair is seen moving back and forth in a narrow range within the upper bound of the 0.71 handle amid holiday-thinned markets while markets turn cautious heading into the crucial US-China trade talks due later in the week ahead.

The bulls are looking to reclaim the 0.72 handle, despite fresh concerns over the US-China trade issue following reports that the World Trade Organisation (WTO) is expected to investigate Trump’s tariffs on the Chinese goods. Recall that the US-China trade talks are set to resume later this week.

The main driver behind the Aussie’s upside is broad-based US dollar weakness, as the greenback remains under pressure, in the wake of the recent Wall Street Journal (WSJ) report that cited the Fed will pause its policy normalization.  The USD index keeps its range near weekly lows of 95.74, modestly flat so far.

Calendar-wise, Monday holds little of relevance for the pair and hence, the attention turns towards the key Australian Q4 2018 CPI report and the FOMC decision due on Wednesday for the next direction on the prices.

AUD/USD Technical Levels

AUD/USD

Overview:
    Today Last Price: 0.7181
    Today Daily change: -3 pips
    Today Daily change %: -0.04%
    Today Daily Open: 0.7184
Trends:
    Daily SMA20: 0.7135
    Daily SMA50: 0.7172
    Daily SMA100: 0.717
    Daily SMA200: 0.7302
Levels:
    Previous Daily High: 0.7185
    Previous Daily Low: 0.7076
    Previous Weekly High: 0.7185
    Previous Weekly Low: 0.7076
    Previous Monthly High: 0.7394
    Previous Monthly Low: 0.7014
    Daily Fibonacci 38.2%: 0.7143
    Daily Fibonacci 61.8%: 0.7117
    Daily Pivot Point S1: 0.7111
    Daily Pivot Point S2: 0.7039
    Daily Pivot Point S3: 0.7002
    Daily Pivot Point R1: 0.7221
    Daily Pivot Point R2: 0.7258
    Daily Pivot Point R3: 0.733

 

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