AUD/USD is holding above its 200-day moving average
A daily close above the 200-day MA (blue line) will be the first since March 2018. Yesterday, buyers were shy by just 2 pips so they will be looking to build on the more positive risk environment today to try and break that level.
From a technical perspective, this is quite a bullish chart to be looking at. Price is breaking multiple key trendline resistance levels and is also crossing over a key resistance point not seen in more than a year as pointed out above.
The only qualm I have for now is that price is just resting under the late October to early November highs around 0.6925-30. But if buyers can clear these hurdles, the technical picture looks very one-sided at this point.
What's even more impressive is that this comes against the backdrop of more sluggish Australian economic data and with odds of the RBA possibly cutting its cash rate by another 25 bps next February.
But for now, the broader theme in markets is at play and that is the US-China trade rhetoric. So far, markets are keeping more optimistic to end the week and that will be the key risk factor to pay attention to going into the weekend.
