AUD/USD: Buyers and sellers seek fresh clues to break the range
|- AUD/USD remains range-bound as trade-positive signals confront overall USD strength.
- FOMC minutes couldn’t disappoint greenback buyers.
- Risk recovery in the spotlight amid a lack of major data/event.
Given the recent risk-on confronting broad US Dollar (USD) strength, the AUD/USD pair keeps inside a short-term trading range while taking rounds to 0.6780 on early Thursday morning in Asia.
The US President Donald Trump’s U-turn on the prospects of a trade deal with China, from previous “maybe” to doing “great”, seems to have gained major market attention off-late while his ever unlike of the Fed Chairman Jerome Powell’s policies failed to get noticed.
Recently, the International Monetary Fund (IMF) warned the US and China that hiking tariffs only harms both domestic and global growth.
Minutes of the July month Fed monetary policy meeting keeps the gate open for further rate cuts while considering the latest 0.25% rate cut as a mid-cycle adjustment. It should, however, be noted that some among the policymakers were not in support of such a move.
Market’s risk tone recently surged with the US equity benchmarks gaining near 1.0% by the closing time whereas Treasury yields also portraying the recovery.
With no major data left for publishing the Aussie moves are more likely to rely on trade/political news ahead of the key Jackson Hole Symposium that begins late-Thursday in the US.
Technical Analysis
The 0.6822-0.6745 area continues to limit the quote with the latest bullish signals by 12-bar moving average convergence and divergence (MACD) on the daily chart increases the hope for witnessing June low of 0.6831. If prices decline below 0.6745, 0.6700 and monthly bottom around 0.6677 can please the bears.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.