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AUD/USD climbs further beyond 0.6900 handle, fresh weekly tops

2019-06-20 16:00

  • The USD continues to be weighed down by the dovish FOMC statement.

  • The latest US-China trade optimism remained supportive of the up-move.



 The AUD/USD pair held on to its strong intraday gains near weekly tops and was now seen extending the momentum further beyond the 0.6900 handle.



The pair built on this week's goodish recovery move from multi-month lows, with a combination of supporting factors helping the pair to continue gaining positive traction for the third consecutive session on Thursday.



The US Dollar remained on the defensive and lost some additional ground in the wake of Wednesday's dovish FOMC statement, suggesting that the US central bank could ease monetary policy as early as next month.



The Fed acknowledged that uncertainties have increased and inflationary pressure has receded, which triggered a fresh leg of a free fall in the US Treasury bond yields and kept exerting downward pressure on the greenback.



On the other hand, the China-proxy Australian Dollar further benefitted from some renewed optimism over a possible resolution to the prolonged trade disputes between the world's two largest economies.



In the latest development, China Commerce Ministry confirmed that the top US and Chinese trade officials will hold discussions under instruction from respective leaders, albeit failed to provide any fresh bullish impetus.



Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term and positioning for an extension of the ongoing recovery move.



Moving ahead, Thursday's US economic docket - featuring the releases of Philly Fed Manufacturing Index and initial weekly jobless claims, will now be looked upon for some impetus later during the early North-American session.



Technical levels to watch





 


This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.

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