The Australian dollar is the best performing G10 currency today as rising copper prices appear to support commodity-linked currencies amid subdued USD demand. AUDUSD bounced back from the lowest since Jan 6th on Friday and bounced back above the 0.6900 level, however the hawkish Fed and the increasing tensions between the US and China limit the upward movement. Currently, the pair is approaching the local resistance at 0.6925 marked by previous price reactions, the 50% retracement of the last upwave and the SMA50 (green line). A break to the upside would open the way to next resistance at 0.6980. However, if the sellers manage to regain control and halt the rise, further downside momentum towards the 0.6870 support could occur. The aussie could be in the evening and in the upcoming Asian session during the publication of the PMI data for February and des RBA protocol experience increased volatility.
AUDUSD in the H4 chart. Source: xStation5 by XTB
Despite heightened geopolitical tensions, there is a clear weakness of the US dollar to observe. Source: xStation5 by XTB
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