• 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.
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