AUD/USD: Extension of China truce – OCBC
|Australian Dollar (AUD) was a touch firmer this morning amid supported risk sentiment and improvement in business confidence, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Bearish momentum on daily chart fades
"Trump confirmed an extension of trade truce for another 90 days into early November. This means tariffs on China imports will stay at 30% while tariffs on US imports will stay at 10%. Meanwhile, Nvidia and AMD have managed to strike a deal with US administration to sell advanced chips to China by agreeing to pay the US government 15% of revenue from the sales."
"AUD was last at 0.6520 levels. Bearish momentum on daily chart faded while RSI rose. Resistance at 0.6550 levels. Support at 0.65, 0.6430 levels."
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