AUD/USD sits below 200-day MA, N.Korea nuclear offer ignored

• N.Korea news fails to put a bid under the risky assets. 
• AUD/USD trades below the 3200-day MA. 

Aussie dollar struggles to gain altitude against its American counterpart despite reports of North Korea nuclear offer. 

As of writing, the AUD/USD pair is trading largely in a sideways manner below the 200-day moving average (MA) of 0.7793. 

Reports hit the wires a few minutes ago, stating that North Korea leader Kim Jong Un has offered to stop nuclear testing and would like to meet US President Trump as soon as possible. Further, South Korean National Security Chief Chung has reportedly said that Trump will meet Kim by May.  The reports of North Korea denuclearization, though positive for risky assets, have failed to put a bid under the Aussie dollar. Also, the S&P 500 futures are flatlined. 

The lukewarm response is not surprising as history shows North Korea does not live up to its promises. Further, the upside in the Aussie dollar is likely being capped by Trump's tariff plan. 

Looking ahead - The pair may drop if the US wage growth figure beats estimates. Also, China inflation data could influence the Aussie dollar. 

AUD/USD Technical Levels

As of writing, the pair is trading at 0.7784. A break below 0.7770 (100-day MA) could yield a sell-off to 0.7712 (Mar. 1 low)  and 0.77 (psychological support). On the higher side, breach of resistance at 0.7793 (200-day MA) would shift risk in favor of a rally to 0.7839 (previous day's high). A close higher would open doors for a sustained rally to 0.7893 (50-day MA).