• Trade war fears prompt some fresh USD weakness and help regain positive traction.
• Weaker commodities offset by the ongoing slide in the US bond yields and remain supportive.
• Traders now eye US durable goods order data in order to grab some short-term opportunities.
The AUD/USD pair gained some fresh positive traction on Friday and recovered a part of previous session's slump from weekly tops.
The pair continues finding decent buying interest near the 0.7685-80 region and was now being supported by some renewed US Dollar selling bias, amid rising trade tensions following the US President Donald Trump new anti-China tariffs.
Meanwhile, a negative tone around commodity space, which tends to undermine demand for the commodity-linked Australian Dollar, was largely negated by a follow-through downfall in the US Treasury bond yields and remained supportive of the bid tone surrounding higher-yielding currencies - like the Aussie.
It, however, remains to be seen if the pair is able to build on the positive momentum further beyond the 0.7730 supply zone or the up-move once again fizzle out at higher levels. Traders now look forward to the release of US durable goods orders in order to grab some short-term opportunities on the last trading day of the week.
Technical levels to watch
On a sustained move above 0.7730 immediate hurdle, the pair seems to head back towards challenging the 0.7765-70 supply zone before eventually darting towards the very important 200-day SMA barrier near the 0.7800 handle.
On the flip side, 0.7685-80 zone might continue to lend immediate support, which if broken might now turn the pair vulnerable to slide further, initially towards 0.7640-35 intermediate support en-route the 0.7600 round figure mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains near 1.0700, awaits key US data
EUR/USD clings to gains near the 1.0700 level in early Europe on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.