AUD/USD sits mildly higher but price holds below key hourly moving averages
The early morning optimism in Asia Pacific trade saw price hit a high of 0.7019, testing the swing region close to 0.7020 before backing off and then moving down to 0.6980 levels as US tariffs take effect and China vowed to retaliate in response.
Price has since recovered a bit more towards the 0.7000 handle as risk sentiment improves, but sellers are continuing to lean on the 100-hour MA (red line) @ 0.6998 and is so far holding out in their battle against buyers for near-term control.
All eyes are on the developments in Washington right now as to how US-China trade talks will progress heading into the weekend. Goes without saying, more positive headlines will help boost AUD/USD while more pessimistic headlines will prove to be a drag for the pair.
In any case, just be wary of any further downside pressure as there is support from around 0.6963 but also from large expiries at 0.6950 rolling off later today. Those will be key near-term levels to look out for if risk sentiment softens later on.
Meanwhile, topside resistance is seen at the key hourly moving averages above but also around 0.7020 before further resistance is seen around 0.7050 and then 0.7070. Those will be key near-term levels to pay attention to in the event of a run higher.