Audusd Moves On Trade Optimism

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Audusd Moves On Trade Optimism

Aud/Usd Moves Higher To 0.6550 On Trade Optimism

AUD/USD is moving towards the 0.6550 handle on Tuesday's session on the back of trade optimism. There are reports that China will lift tariffs on various Australian products by the end of March.

Reports like this have boosted the AUD as investors are now more optimistic about the trade relations between the two countries. Looking ahead, central US economic data is due that could send the AUD/USD towards the next direction.

Aud/Usd Rejected At 200 Sma

Earlier, the AUD/USD dived to multi-day lows as the pair failed to reclaim the 200 SMA located at 0.6560. However, that is now invalid as the AUD/USD appears bullish in the short term.

According to experts, the 0.6500 handle is essential for AUD sellers to control the pair. A close below this level will send the pair toward 0.6468 and 0.6442, where the 13th February low is located.

consistent selling pressure will open the doors to the 0.6400 and then the 0.6200 handle. Conversely, the 0.6600 level is where the 200 SMA on the D1 chart can be seen.

While the trade optimism is a solid reason, the mixed market mood is another factor supporting a bullish AUD/USD. Additionally, investors are also acting cautiously as they await the top-tier data from Australia and the USA.

Meanwhile, the AUD/USD can be seen trading at 0.6538 with a change of -0.03% on the daily timeframe. The bottom line is that the investors are cautious due to the mixed tone and the upcoming data.

Around eight speakers from the Fed will be sharing their views along with the Durable Goods Orders from the USA. All of these events can influence the Fed's next move.

Moreover, the Consumer Confidence and the housing data can also highlight the need for the Fed to cut rates. Later, the PCE and the inflation figure are due, which can also impact the US bond yields and the USD.

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