AUD/USD on the bids around 0.6935, all eyes on RBA’s Lowe
|- Aussie buyers show less attention to the US-China trade tussles ahead of a speech from the RBA’s Lowe.
- Broad USD weakness continues to play positive for commodity-linked currencies.
The US and China continue to remain at loggerheads but the AUD/USD pair seems to show less attention to the stalemate as it takes the rounds to 0.6935 amid initial Asian session on Monday. Traders now await a speech from the RBA’s Governor for fresh impulse.
The Aussie pair benefited from the US Dollar’s (USD) broad weakness during last-week while showing less attention to the differences between the world’s two largest economies that indicates a major economic threat.
The reason could be the US Federal Reserve’s dovish appearance and market rush towards the risk-off.
Recent headlines on the trade front are negative, which in turn highlights the risk of another failed talks between the US and China when they meet at the sidelines of the G20.
China’s Global Times signaled that the dragon nation will put the US-based leading courier delivery service company FedEx on its ‘unreliable entities list’ whereas Bloomberg came out with the report quoting Chinese state media as saying that China would fight trade war to the end.
Moving on, speech from the Reserve Bank of Australia’s (RBA) Governor Philip Lowe will gain major market attention from the Aussie traders. In his latest appearance, Mr. Lowe cemented expectations of another rate cut from the Australian central bank.
Technical Analysis
A sustained break of May 31 high around 0.6945 becomes necessary for the pair to aim for 50-day simple moving average (SMA) level of 0.6970 and 0.7000 mark afterward, failing to which can drag the quote back to 0.6900 and then to 0.6860 support levels.
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