AUD/USD: consolidates overnight 65 pip surge, awaiting trade data

AUD/USD:

AUD/USD:

AUD/USD has dipped away from the risk-on fuelled highs, testing below the 0.7720 level, and currently, AUD/USD is trading at 0.7718, up 0.02% on the day, having posted a daily high at 0.7728 and low at 0.7714.

Overnight, the Aussie lifted as stocks sold off, (AUD/JPY was supporting the Aussie to 0.7721, the NY high. AUD/USD had been lifted in an improved risk environment when US stocks rode optimistic sound bites from various sources relating to the trade war tit-for-tat noise.

• Trade wars back with a 'cooler' bias, antipodeans better-off - Westpac
• Forex today: risk-off/risk-on, sentiment for China and US to behave ... eventually

Treasury Secretary Ross was suggesting that these initial threats with China are likely to lead to negotiation and markets hope for them to take place before tariffs kick in.  

AUD/USD gets above 10-D SMA

This NY session has left the Aussie above the key 10-D SMA ahead of domestic trade data risk coming up soon, (Westpac looks for -1.6% on total exports and flat imports, cutting the surplus to A$0.5bn), while otherwise, China is out on holiday and markets will stay tuned for further trade-related developments from across the wires. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that despite the advance, the pair retains a short-term neutral stance:

"In the 4 hours chart, it continues moving back and forth around its 20 SMA, while technical indicators remain pat around their mid-lines, with no directional strength." "The 0.7740 Fibonacci level is a key, strong resistance area, with steady gains above needed for the pair to offer a more constructive bullish stance."