AUD/USD trims losses, back near 0.7050

By FXStreet FXStreet (Edinburgh) – The Aussie dollar is deriving further support from the commodity-bloc currencies, now sending AUD/USD to test the upper band of the range in the 0.7050/60 area.

AUD/USD supported around 0.7000

The pair has managed to revert the initial drop to the 0.7000 neighbourhood following the poor results from the trade deficit in Oz, widening more than expected during December. Despite the upside, spot is recovering just a part of yesterday’s deep sell-off after being rejected from recent highs in the mid-0.7100s.

However, better-than-expected Caixin Services PMI in China during the last month has given extra legs to AUD, lifting the pair to the current area of daily tops and collaborating with the now upbeat tone in the region.

AUD/USD relevant levels

As of writing the pair is down 0.05% at 0.7046 and a breach of 0.6916 (low Jan.26) would aim for 0.6873 (low Jan.21) and finally 0.6825 (low Jan.20). On the other hand, the next hurdle aligns at 0.7143 (high Jan.29.) followed by 0.7332 (high Dec.31) and then 0.7331 (200-day sma).
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Source:: FX Street