AUD/USD clings to 0.6820 as market looks for fresh developments on weekend news
|- AUD/USD buyers ignore weekend news concerning the US-China trade deal, Brexit and geopolitics.
- US-China nearing some sections on the trade deal, EU to announce a three-month Brexit extension and the US killed ISIS leader.
- Chinese Industrial Profits fell, the US data, trade news in the spotlight for now.
AUD/USD shows no major reaction to the weekend news as it clings to 0.6820 during initial Asian trading hours on Monday.
The first and the most important, development that could have pleased the Aussie buyers is the Reuters’ piece suggesting trade developments between the United States (US) and China. As per the news, diplomats from both sides have recently discussed key issues and are well geared for further negotiations.
Further, the Guardian conveys that the European Union (EU) is ready to allow a three-month Brexit extension to January 31, 2020, to the United Kingdom (UK). The same will now shift market’s focus to the voting on the UK Prime Minister’s proposal for an early election that will be held today.
Moving on, the US claimed to have killed the Islamic State of Iraq and the Levant (ISIS) leader Abu Bakr al-Baghdadi while China’s Industrial Profits fell -5.3% YoY in September, registering the second month of decline after falling -2.0% in August.
It's worth noting that the global rating agency Fitch is out with its stable outlook and “AAA” rating for Australia in the latest analysis. However, the rating giant does forecast that Australia's Gross Domestic Product (GDP) growth to slow sharply to 1.7% in 2019, from 2.7% in 2018 while also expecting a rise to 2.3% in 2020.
In a reaction to the latest change in the key catalysts, market sentiment remains mostly mixed with the SP500 Futures marking 0.20% gains by the press time while Asian stocks staying less changed at the time of writing.
Investors’ focus will remain on the trade/Brexit news amid a lack of major data/events up for publishing on the economic calendar.
Technical Analysis
Sellers are waiting for entry below 0.6800 round-figure to aim for a 21-day Simple Moving Average (SMA) level of 0.67852 whereas buyers are less likely to step in unless breaking September month top nearing 0.6900.
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.