Forex Market Analysis

AUD/USD Currency Pair Seesaws Near 0.6900 As Traders Want More Clarity Regarding Sino-US Trade deal.

The AUD/USD currency pair flat near the 0.6900, mainly due to mixed sentiment regarding the Sino-US trade deal. As of writing, the AUD/USD currency pair is currently trading at 0.6920. The currency pair recently benefited from the Sino-US phase-one trade deal signing and positive comments from the U.S. and Chinese trade negotiators.

Apart from the Sino-US trade deal, China also cheered Trump administration as the U.S. removed China from the currency manipulator list. Besides, the latest comments from the United States Senate leader McConnell who sent optimism that the latest United States–Mexico–Canada Agreement (USMCA) will pass the house on Friday, also supported the Aussie.

While the U.S. Vice President Mike Pence said that Phase 2 talks had already started and officials are struggling to resolve disputes. As in result, the risk-on sentiment improved in the market, and ultimately riskier assets also got support.

Looking forward, November month Home Loans and Investment Lending for Homes from Australia will be followed by China’sChina’s December month House Price Index to offer a fresh direction to the pair.

Daily Support and Resistance

S3 0.682
S2 0.686
S1 0.6881
Pivot Point 0.6899
R1 0.6921
R2 0.6939
R3 0.6978

Technically speaking, the AUD/USD is trading bullish at 0.6920 within a bullish channel, which is keeping the Aussie on the higher side. The AUD/USD pair is likely to find resistance around 0.6930, but the latest higher’s high pattern may drive more buying in the AUD/USD pair.

The MACD and RSI are crossing over in the bullish zone, and these may underpin the demand for AUD/USD. On the higher side, the bullish breakout of 0.6930 is likely to lead Aussie prices towards 0.6960, while support continues to stay around 0.6900. Let’sLet’s stay bullish above 0.6910 today. Good luck!

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