Aussie dollar is making shallow bullish attempts on Friday and finishes the third negative week in a row. AUDUSD struggled to challenge the 0.6930 area earlier this month and fails to regain the upside momentum since then. In the hourly charts, the pair is below both the 100 and 200-SMAs, which confirms the bearish tone in the pair. Despite the Australian dollar is green in the daily timeframes, the prices remain close to one-week lows below 0.68.
Market sentiment has improved somehow after positive trade-related statements from China. In particular, Beijing has extended an invitation to the trade negotiations with the US, showing its willingness to continue the talks in attempts to resolve the long-standing trade dispute. besides, there are reports that Washington could delay the mid-December tariffs even without a partial deal. But it seems that this is not enough to bring back demand for AUD which remains on the defensive. Nevertheless, the pair could slow its bearish momentum amid oversold conditions should trade hopes continue to rise.
Apart from trade, the currency will continue to monitor fresh signals from the Reserve Bank of Australia. In this context, the central bank’s governor Philip Lowe speech due туче week will be important as the policymaker could give the markets some fresh hints on the outlook for the monetary policy in general and interest rates in particular. Should Lowe refrain from clear signals on the economy or monetary policy, the pair will continue to follow the direction of risk sentiment in the global markets.
Worth noting, the US dollar shows mixed dynamics against major rivals, while the Aussie fails to derive support from higher oil prices, with Brent challenging two-month highs around the $64 figure and finishes the trading week on a positive note. Technically, should the pair fail to get back above the 0.68 handle any time soon, the downside pressure may intensify and sent the prices to fresh lows around 0.6770. To see a better technical picture, AUDUSD needs to regain the 100-DMA at 0.6830.