AUD/USD: Probing 4H 200MA hurdle amid rise in copper to highest since July
- AUD/USD is struggling to cross the 4H 200-candle moving average (MA), currently at 0.7156.
- Copper, one of Australia's top exports, has jumped to the highest since July on US-China trade optimism.
- Bull revival in AUD likely above 0.7207 - the high of Thursday's bearish outside reversal candle.
AUD/USD is struggling to beat the 4-hour 200-candle moving average (MA), currently at 0.7156, having picked up a bid at 0.7130 in early Asia on expectations of a trade agreement between Washington and Beijing.
Earlier today, Trump announced on Twitter that there is a very good chance the United States would strike a deal with China to end their trade war and so he is planning to extend the self-imposed March 1 tariff deadline.
The clear hint of a breakthrough trade deal is boding well for commodities and risk assets in general. For instance, at press time three-month copper on the London Metal Exchange is reporting moderate gains at $6,494, having hit a high of $6,508 a few minutes ago - a level last seen in July. Meanwhile, the S&P 500 futures are up 0.5 percent.
The uptick in key commodities like copper and the risk-on in equities could help the AUD convincingly scale the 4H 200-candle MA of 0.7156. That said, a break above 0.7207 is needed to invalidate the bearish outside reversal candle carved out on Feb. 21. As of writing, AUD/USD is trading at 0.7151, having hit a high of 0.7162 an hour ago.
AUD/USD Technical Levels