Home Forex Technical Analysis AUD/USD extends gains as dollar, yen continues to hold weak on the day – ForexLive

AUD/USD extends gains as dollar, yen continues to hold weak on the day – ForexLive

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The dollar and yen are the losers of the improved risk tone to start the week


ForexLive

It’s not just the aussie that is benefiting from the move here as the likes of the kiwi, euro, and swissie are also extending gains against both the dollar and yen currently. Of note, AUD/USD is up by 0.6% on the day and buyers are now aiming for a move towards the 0.7200 handle after having defended a test of the 100-hour MA (red line) in Asian trading.

Price is shaking off the 50.0 retracement level @ 0.7159 but the key level to watch out for is the 100-day MA @ 0.7163. Hold above that and it will be a good platform for buyers to build on this week.

The aussie’s gains today is largely coming from the fact that Trump is postponing tariffs on China as trade negotiations are said to have made significant progress. However, as mentioned earlier, there is little suggestion so far of what sort of trade deal to expect given the lack of details since the conclusion of talks last week.

That said, the mood in Chinese stocks is proving to be a bellwether for risk assets today so it’s now over to Wall St to see if the rally can be sustained. I’m still skeptical of substantial trade progress in the bigger picture but it’s hard to ignore the signs in the near-term.

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