AUD/USD spikes to 0.6900 neighbourhood on renewed trade optimism

• China’s optimistic trade-related comments underpinned the Aussie.
• A turnaround in the global risk sentiment provided an additional boost.

The AUD/USD pair reversed an early dip to over one-week lows and refreshed session tops in the last hour, with bulls now eyeing a move beyond the 0.6900 handle.
 
The pair managed to attract some dip-buying interest near the 0.6860 region and got an additional boost after China's Commerce Ministry said that the US and China have agreed to cancel existing tariffs in different phases.

Renewed trade optimism supportive

The latest headlines helped offset the overnight report, suggesting that phase one deal might be delayed until December and turned out to be one of the key factors that provided a strong lift to the China-proxy Australian Dollar.
 
The optimistic remarks led to a sudden turnaround in the global risk sentiment and further collaborated towards driving flows towards perceived riskier currencies, like the Aussie, albeit the uptick lacked any strong follow-through.
 
The risk-on mood-led uptick in the US Treasury bond yields extended some support to the US Dollar and might keep a lid on any runaway rally for the major, at least for now, amid absent relevant market-moving economic releases.
 
Hence, it will be prudent to wait for a sustained move beyond the 0.6900 round-figure mark before traders start positioning for any subsequent appreciating move back towards challenging the 0.6925-30 heavy supply zone.

Technical levels to watch