AUD/USD on the bids near 0.6990 as US-China trade watchers turn optimistic ahead of G20
|- Comments from the US Treasury Secretary, together with the absence of criticism from Chinese media, build sentiment surrounding G20.
- The US President Donald Trump’s criticism of the Fed added strength into the Antipodeans.
- Lack of data at home highlights trade developments at the much awaited global meet.
Not only positive comments from the US Treasury Secretary Steve Mnuchin but the absence of the US criticism from Chinese media and sustained doubts over the Fed’s ideology by the US President favor the AUD/USD pair to remain strong around 0.6990 during the early Asian session on Thursday.
The US Treasury Secretary recently mentioned that he is hopeful of a trade deal with China and 90% of work is complete. Though, the timing of the deal is less clear. Traders took it as a positive signal to the G20 meeting between the US President Donald Trump and his Chinese counterpart XI Jinping which is keenly awaited.
While the Australian economic line remains short, the President Trump’s repeated criticism to the US Federal Reserve’s refrain from rate cuts and absence of upbeat US data offered an additional boost to the Aussie.
Market risk sentiment also improved ahead of the key global meeting with the 10-year US bond yields recovering their stand above 2.00% mark.
Even if the Trump-Xi meeting is likely to take place tomorrow, how global leaders react to the latest US sanctions and counteractions from the President Trump will entertain market players amid the lack of major Aussie data.
Technical Analysis
A sustained trading beyond 50-day simple moving average (SMA) enables buyers to aim for the current month high close to 0.7022, a break of which can escalate the recovery in the direction to 100-day SMA level of 0.7037.
Meanwhile, a downside break of 0.6963 immediate SMA support can drag the quote back to May-end low surrounding 0.6900
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