AUD/USD snaps two-day losing streak to extend recovery above 0.6500

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AUD/USD remains modestly positive around 0.6540/45, up 0.11% on a day, amid the Asian session on Monday. Although the US-China tension keeps Aussie buyers worried, the latest silence on the part of US President Donald Trump over the Hong Kong issue seems to contribute towards the pair’s pullback moves. Additionally, a lack of major data, as well as the US holidays, gives traders a chance to recover the previous two-day losses.

Following the US policymakers’ signals to make sure that Hong Kong remains free from Chinese pressure, Beijing announced readiness to enact e legislation that would tighten the dragon nation’s grip over Hong Kong.

While the majority of the Western world diplomats, joined by US Secretary of State Mike Pompeo, criticized the Asian major’s efforts to harm the neighbour's democracy, US President Trump is surprisingly silent over the issue off-late. It’s worth mentioning that Hong Kong’s pro-democracy group staged the first protest of 2020 during the weekend.

On the other hand, Global Times keeps flashing worrisome headlines to challenge the world’s largest economy and risks fallout from the trade deal.

Additionally, Aussie PM Scott Morrison and the company reiterated its support for Hong Kong’s autonomy while also talking down that they have triggered a political row with China as saying that.

That said, the market’s risk-tone remains on the recovery mode as the S&P 500 Futures and Japan’s NIKKEI register gains by the press time.

Looking forward, traders may keep eyes on the US-China tussle for fresh impulse amid the US holidays and a light calendar moving forward.

Technical analysis

Despite the recent recoveries, buyers will not risk entry unless the pair closes beyond 0.6625 comprising 200-day EMA, which in turn highlights a 100-day EMA level of 0.6485 as short-term key support.

Additional important levels

Overview
Today last price0.6539
Today Daily Change2 pips
Today Daily Change %0.03%
Today daily open0.6537

 

Trends
Daily SMA200.6489
Daily SMA500.6286
Daily SMA1000.6495
Daily SMA2000.6661

 

Levels
Previous Daily High0.6578
Previous Daily Low0.6506
Previous Weekly High0.6617
Previous Weekly Low0.641
Previous Monthly High0.657
Previous Monthly Low0.598
Daily Fibonacci 38.2%0.6533
Daily Fibonacci 61.8%0.655
Daily Pivot Point S10.6502
Daily Pivot Point S20.6468
Daily Pivot Point S30.643
Daily Pivot Point R10.6575
Daily Pivot Point R20.6613
Daily Pivot Point R30.6647