AUD/USD Bounces Off Over 61.8% – Quick Trade Idea
Arslan Butt • 1 min read
The AUD/USD currency pair is flashing green, climbing 40 pips, hitting the session highs of 0.6768, as the United States is planning a currency spat with China. As we know, the Australian Dollar takes a strong influence from the Chinese economy. With every optimistic news regarding the US-China trade war, the demand for the US dollar rises.
Today, AUD/USD is trading bullish since Donald Trump is planning a currency deal with China as part of an early partial deal that could pave the way for a suspension of the planned tariff hikes of next week.
The headlines set a buying for the Australian Dollar, a proxy for China, at lows near 0.6720. The futures on the S&P 500 SPX also regained from the decline. The index futures had fallen 1% in the early Asian trading session in the wake of the United States and China trade discussion results.
On the other hand, the Huawei news could send the Australian Dollar and other risky assets bullish.
Meanwhile, the Trump administration is ready to give a permit to some United States companies to supply goods to the Chinese company and that has also increased the hopes of positive trade talks.
Daily Support and Resistance
Pivot Point 0.6732
AUD/USD – Trade Idea
The idea is to stay bullish above 0.6732 with a stop loss above 0.6700 and take profit at 0.6800.