AUD/USD: Buyers and sellers jostle around 0.7100 amid trade optimism
|- Positive developments surrounding the US-China trade discussions confront overall USD strength.
- 0.7150 and 0.7060 can entertain traders on the break of the 0.7100-0.7130 trading range.
AUD/USD is on the bids around 0.7100 during the early Asian session on Monday. The quote has recently been struggling between 0.7100 and 0.7130 as upbeat developments at the US-China trade negotiations confront the US Dollar (USD) strength. Australia’s domestic job advertisement and factory orders from the US could join on-going trade-related news reports to entertain Aussie traders going forward.
Positive developments surrounding its largest customer, namely China, have been pleasing the Australian Dollar (AUD) traders off-late. Be it welcome purchasing managers’ index (PMI) or successful trade discussion with the US, China is likely coming back to its track after witnessing a few months of downtime.
Recently, China’s state-run CCTV reported that the US and China made “new progress” during the latest round of trade talks. The news report further said that both sides were working on a draft text that included technology transfers, protection of IP rights, services, agriculture, the trade balance and implementation.
At the end of the draft text on the deal, the US President Donald Trump and his Chinese counterpart Xi Jinping will meet to announce an end of the fierce trade war between them. However, there are many uncertainties lying on the road that continues to highlight investors’ preference for the safe-havens.
In case of data, March month ANZ job advertisements from Australia and the US factory orders for February could gain market attention. Job advertisements have been a disappointment off-late and dropped -0.9% during February whereas factory orders might slump -0.6% compared to +0.1% increase during the earlier month.
AUD/USD Technical Analysis
Not only 0.7130 resistance that has been limiting the pair’s advances since the month-start but a seven-week long descending trend-line near 0.7145/50 could also challenge Aussie buyers. Should prices rally beyond 0.7150, 0.7170 and 0.7200 may question bulls.
Meanwhile, 0.7100 continues to become short-term important support ahead of 0.7070 and five-week-old ascending trend-line, at 0.7060.
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