The AUD/USD currency pair has extended current monthly gains to trade just below the key level 0.6900 after both the US and China showed a gesture of goodwill on trade wars. The currency pair momentarily surged to trade at around 0.6885 before pulling back slightly to hold firm above 0.6870.
The pair is now trading just above the 100-hour MA line and this could act as support to prevent further downside going into next week.
AUD/USD Fundamentals Overview
From a fundamental perspective, the AUD/USD currency pair is trading at the back of a significantly busy week that has returned mixed reactions based on the latest rounds of US data.
On Monday, the US Consumer Credit change beat expectations of $16 billion with $23.29 billion while on the following day, JOLTS Job Openings missed expectations of 7.311M with 7.217M.
Wednesday was a little busier with the Producer Price Index beating expectations on a monthly and yearly basis. The PPI ex-Food and energy also impressed after outperforming the forecasted figures.
And today, traders will be looking forward to another busy day in the US economic corridors with Retail Sales data, as well as, imports and exports data expected later in the day.
AUD/USD Technical Analysis (the 60-min Chart)
Technically, the AUD/USD currency pair appears to be trading in an upward trending channel in the 60-min chart, which implies a short-term bearish bias. The pair currently enjoys strong trendline support around 0.6870, which is placed just above the current level of the 100-hour MA line.
Therefore, the bulls will be targeting short-term profits at around 0.6885 or higher at 0.6900 going into the weekend. On the other hand, the bears will hope for a move downwards towards 0.6850.
AUD/USD Technical Analysis (the Daily Chart)
In the daily chart, the AUD/USD currency pair appears to be trading under strong bearish pressure with boh the 100-day and the 200-day moving average lines just above the current level of the pair. The currency pair recently made a rebound off the trendline support at 0.6723 and there is still room to run up top.
Therefore, the bulls will be targeting long-term profits at around 0.6936, 0.6996 and 0.7076. On the other hand, the bears will hope for a quick pullback towards 0.6798 and 0.6723.
In summary, the AUD/USD currency pair appears to be trading under strong bearish pressure in the long-term, but in the short-term, the bulls are trying to seize control.