OctaFX | OctaFX Forex Broker
Open trading account

AUD/USD consolidates recent gains to 2-week tops, just above mid-0.6900s

  • The post-FOMC USD bearish pressure remains unabated and continues to lend support.
  • Investors turn cautious ahead of Trump-Xi meeting at the G-20 summit later this week.
  • Tuesday’s US economic data and Fedspeaks eyed for some short-term trading impetus.

The AUD/USD pair struggled to capitalize on its early uptick to two-week tops and now seems to have entered a bullish consolidation phase, just above mid-0.6900s.

The US Dollar remained on the defensive amid expectations of a more dovish Fed, which pulled the US Treasury bond yields down to levels below the 2.0% mark and eventually assisted the pair to build on its recent recovery from multi-month lows. 

The uptick, however, lacked any strong follow-through as investors now seemed reluctant and preferred to wait on the sidelines ahead of a one-on-one meeting between the US President Donald Trump and Chinese President Xi Jinping later this week.

It is worth reporting that renewed optimism over a possible resolution to the prolonged trade disputes between the world's two largest economies had been one of the key factors underpinning the China-proxy Australian Dollar over the past one-week or so.

From a technical perspective, the positive momentum seems to have faltered near 50-day SMA and hence, it would be prudent to wait for a sustained move beyond the mentioned barrier before positioning for any further near-term appreciating move. 

Moving ahead, Tuesday's US economic docket - featuring the releases of the Conference Board's Consumer Confidence Index, Richmond Manufacturing PMI and new home sales data, will now be looked upon for some short-term impetus.

This coupled with speeches by influential FOMC members - including the Fed Chair Jerome Powell, will further collaborate towards producing meaningful trading opportunities and making it yet another eventful day for short-term traders.

Technical levels to watch


US’ Bolton: ‘All Iran has to do is walk through that open door to enter negotiations with the US’

Reuters reports the latest comments by the US National Security Adviser Bolton, as he speaks about a potential US-Iran negotiation. Bolton said: “All
Read more Previous

Trump and Xi meeting in focus for G-20 – Deutsche Bank

Deutsche Bank analysts suggest that on the upcoming meeting between Trump and Xi at the G20, various media reports are saying that it will take place
Read more Next
Start livechat