AUD/USD climbs to session tops, bulls eyeing a move beyond 0.6800 handle
- A slight improvement in the global risk sentiment prompts some short-covering bounce.
- The RBA’s decision to maintain status-quo remained supportive of the recovery movement.
- US-China trade war fears/a modest USD rebound might keep a lid on any runaway rally.
The AUD/USD pair built on its goodish intraday recovery move and climbed to fresh session tops in the last hour, with bulls now eyeing a move further beyond the 0.6800 handle.
Given the recent slump of over 330-pips, the pair witnessed some short-covering move and snapped 11 consecutive days of losing streak - the longest in more than a decade, amid a slight improvement in the global risk sentiment. With investors still digesting the recent escalation in the US-China trade tensions, a more steady Yuan fixing by the PBOC provided a minor lift to investors’ appetite for riskier assets and extended some support to perceived riskier currencies - like the Aussie.
The uptick remained well supported by the RBA decision to maintain status-quo at its latest monetary policy meeting held this Thursday. The Australian central bank also refrained from hinting any further rate cuts, which provided an additional boost, albeit renewed fears of a full-blown trade war between the world's two largest economies might keep a lid on any runaway rally for the China-proxy Australian Dollar.
Hence, it will be prudent to wait for a strong follow-through recovery before confirming that the pair might have bottomed out in the near-term and positioning for any further recovery amid absent relevant market moving economic releases from the US. Meanwhile, scheduled speeches by influential FOMC member might drive the broader market sentiment surrounding the US Dollar and produce some short-term trading opportunities later during the North-American session.
Technical levels to watch