The AUDUSD pair rose sharply at the market’s open and then pared those gains. This was primarily because of the optimism in the US-China trade deal.
March 4, OctaFX – Australia, being close to China in the Pacific, is one of the countries with the most exposure to China. For example, most of its iron ore is shipped to China. Therefore, if the Chinese economy sinks, Australia is usually very exposed.
Earlier today, Australia released mixed economic data. The building approvals rose by 2.5% in January while the business inventories and gross operating profits of -0.2% and 0.8% missed the consensus estimates.
AUDUSD technical analysis
On Friday, the AUDUSD pair reached the important support of 0.7070. The pair then started moving up, and today, it reached a high of 0.7105 and then started moving downwards.
The current price is along the 21-day and 42-day EMAs while the RSI has remained along the 50s level. The pair could continue moving up, especially if there is an indication that a trade deal will be signed.
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