AUD/USD clings to gains above 0.70 handle but lacks follow-through
• Built on the overnight solid comeback, led by broad-based USD weakness.
• Renewed optimism over US-China trade talks provided an additional boost.
• Further gains remained limited ahead of the latest US monthly jobs report.
The AUD/USD pair built on previous session's remarkable comeback from almost a decade low and climbed further beyond the key 0.7000 psychological mark through the Asian session on Friday.
The US Dollar failed to capitalize on Thursday's early up-move, boosted by haven-fueled buying interest, and was being weighed down by a combination of negative factors, which eventually assisted the pair to recover over 230-pips from the Asian session flash crash low level of 0.6771.
The USD bulls largely ignored Thursday upbeat ADP report, showing that private sector employers added 271k new jobs in December, rather responded negatively to some dovish comments by Dallas Fed President Robert Kaplan and disappointing US ISM manufacturing PMI.
Adding to this, renewed optimism over a possible resolution to the US-China trade disputes provided an additional boost to the China-proxy Australian Dollar and collaborated to the pair's follow-through uptick on the last trading day of the week.
However, a modest USD rebound, this time supported by a goodish pickup in the US Treasury bond yields, coupled with traders' reluctance to place aggressive bets ahead of today's release of the US monthly jobs report (NFP) kept a lid on any runaway rally.
Hence, it would be prudent to wait for a strong follow-through buying before confirming that a near-term bottom is already in place and traders start positioning for an extension of the overnight strong recovery move.
Technical levels to watch
Today Last Price: 0.7019
Today Daily change: 17 pips
Today Daily change %: 0.243%
Today Daily Open: 0.7002
Previous Daily SMA20: 0.7108
Previous Daily SMA50: 0.7184
Previous Daily SMA100: 0.7187
Previous Daily SMA200: 0.7346
Previous Daily High: 0.702
Previous Daily Low: 0.6684
Previous Weekly High: 0.7078
Previous Weekly Low: 0.7014
Previous Monthly High: 0.7394
Previous Monthly Low: 0.7014
Previous Daily Fibonacci 38.2%: 0.6892
Previous Daily Fibonacci 61.8%: 0.6812
Previous Daily Pivot Point S1: 0.6784
Previous Daily Pivot Point S2: 0.6566
Previous Daily Pivot Point S3: 0.6448
Previous Daily Pivot Point R1: 0.712
Previous Daily Pivot Point R2: 0.7238
Previous Daily Pivot Point R3: 0.7457