AUD/USD clings to daily gains above 0.71 ahead of ISM non-manufacturing PMI
- US Dollar Index starts the week under pressure.
- Trade talks between the U.S. and China kick off.
- ISM non-manufacturing PMI is next from the U.S.
The AUD/USD pair started the week on a positive note and advanced to a fresh 2-week top at 0.7142 but failed to push higher as investors refrain from making large bets while waiting for headlines from the U.S. - China trade talks and the ISM non-manufacturing PMI data. As of writing, the pair was up 0.27% on a daily basis at 0.7135.
Today, Chinese and American officials will start mid-level trade talks, which will be important for the trade-sensitive AUD. Previewing this event, Danske Bank analysts said this week's talks will probably pave the way for high-level negotiations between President Trump and Chinese VP Qishan later this month at the World Economic Forum in Davos. In an interview with CNBC earlier this week, Commerce Secretary Wilbur Ross said that there was a very good chance of a "settlement with China on immediate trade."
Meanwhile, the US Dollar Index continues to feel the pressure that was created by FOMC chairman Powell's dovish remarks last week. Investors will be paying extra attention to today's ISM non-manufacturing PMI to see if the downside risks to an economic slowdown have started to materialize.
Technical levels to consider
Today Last Price: 0.7135
Today Daily change: 19 pips
Today Daily change %: 0.267%
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