AUD/USD hits 2.5-week highs
- Improved risk sentiment has powered AUD/USD to 2.5-week high in Asia.
- The fading US-China trade tensions and PBOC rate cut put a strong bid under risk assets.
- The Fed rate outlook is likely adding to the bullish tone around the AUD/USD pair.
The AUD/USD pair jumped to 0.7133 in Asia - the highest level since Dec. 20.
The Aussie dollar is likely benefitting from the risk-on action in the stocks. For instance, the S&P 500 futures are currently reporting 0.4 percent gains, having rallied 3.4 percent on Friday. Meanwhile, Japan's Nikkei is reporting 2.8 percent gains.
Moreover, the risk appetite improved on Friday, after Washington and Beijing announced vice-ministerial level negotiations over trade issues. The meeting is scheduled to take place in Beijing this week.
Further, the People's Bank of China (PBOC) lowered the reserve requirement ratio for large financial institutions by a total of one percentage point.
Also, Fed's Powell, on Friday, signaled the central bank could pause interest-rate increases if the US economy weakened, strengthening the bid tone around the risk assets.
Notably, these developments could keep the equity market better bid. The Aussie, therefore, could rise further in the European and US session.
AUD/USD Technical Levels
Today Last Price: 0.7134
Today Daily change: 18 pips
Today Daily change %: 0.253%
Today Daily Open: 0.7116
Previous Daily SMA20: 0.7104
Previous Daily SMA50: 0.7184
Previous Daily SMA100: 0.7185
Previous Daily SMA200: 0.7344
Previous Daily High: 0.7125
Previous Daily Low: 0.6993
Previous Weekly High: 0.7125
Previous Weekly Low: 0.6684
Previous Monthly High: 0.7394
Previous Monthly Low: 0.7014
Previous Daily Fibonacci 38.2%: 0.7075
Previous Daily Fibonacci 61.8%: 0.7043
Previous Daily Pivot Point S1: 0.7031
Previous Daily Pivot Point S2: 0.6946
Previous Daily Pivot Point S3: 0.6899
Previous Daily Pivot Point R1: 0.7163
Previous Daily Pivot Point R2: 0.721
Previous Daily Pivot Point R3: 0.7295