AUD/USD bulls nearing 0.7750 as China plans to open its economy.

• AUD is boosted as China is considering free trade as the best option for its foreign policy. 
• US Consumer Price Index and FOMC Minutes are slated for Wednesday.

The AUD/USD is trading at around 0.7746 up 0.63% on Tuesday as China, Australia’s economic partner announces that it plans to open up its economy.

The Aussie is gaining ground as China’s President said that he is planning on opening up the Chinese economy. The news was welcomed positively by global markets, and it boosted the AUD as Australia’s economy is closely linked to the Chinese one. 

Compounding AUD/USD strength is the US Dollar Index weakness which is trading down close to $89.60.

Coming up tomorrow in the US, the Consumer Price Index and the FOMC Minutes’report at 12:30 GMT and 18:00 GMT respectively.   

AUD/USD weekly chart

The Aussie is trading above 0.7728 (last week’s high) and bulls are very close to the 0.7760 level where both the 50 and 200-period simple moving average (SMA) confluing on the weekly chart. The market has been consolidating in a wedge since the start of 2018 and it is now pinched between the 100-period SMA and the 200-period SMA. 

AUD/USD daily chart

The AUD/USD has essentially been ranging since mid-March as the bear momentum significantly slowed down in the last weeks. The bulls broke above 0.7728 swing high and they will next target the 0.7760 level with the 50-period and 200-period weekly SMA. Further up, the 0.7810 level should offer resistance with the 50-period and the 200-period confluing at the level. To the downside, daily support is at the 0.77 figure and 0.7651 cyclical low. 

AUD/USD 4-hour chart

The 200-period simple moving average is at 0.7752 and only 8 pips away from the key 0.7760 level discussed above; thus adding confluence to the 0.7760 resistance level. A break above the resistance can potentially lead to an acceleration.