AUD/USD seesaws near 0.6900 amid mixed sentiment
|- AUD/USD holds onto recovery gains, following the US-China phase-one deal signing in ceremony.
- Chinese diplomat praises the US, nearness to USMCA passing also supports the risk-on.
- The uncertainty surrounding the phase-two deal and the progress of US President Donald Trump’s impeachment process dim the mood.
AUD/USD stays mildly bid near 0.6905 amid the initial Asian session on Thursday. The pair recently benefited from the US-China phase-one deal signing in and upbeat comments from the US and Chinese trade negotiators. However, the US House step-up the process to oust President Trump, which in turn weighs on the trading sentiment.
In addition to the phase-one deal of $200 billion worth of the US goods/services imports, China also pleased the Trump administration by praising the nation’s dumping off Beijing from the currency manipulator list. Also supporting the trading sentiment could be the latest comments from the US Senate leader McConnell who conveyed optimism that the latest United States–Mexico–Canada Agreement (USMCA) will pass the house on Friday.
On the contrary, the opposition leader Nancy Pelosi, joined by the impeachment managers, delivered documents to push US President Trump’s ousting. Further, the US still has tariffs on Chinese products and wants them to use it for phase-two negotiations. The same might offer a tough start to the phase-two talks that will have some key issues to discuss.
That said, the market’s risk-tone remains mildly positive, looking for fresh clues, amid the trade/political dilemma. As a result, the US 10-year treasury yields seesaw around 1.79% while the S&P 500 Futures keep 0.08% gains to 3,297 by the press time.
Looking forward, November month Home Loans and Investment Lending for Homes from Australia will be followed by China’s December month House Price Index to offer the immediate direction to the pair. Following that, the US Retail Sales will be the key to watch. However, in no case, the trade/political headlines should lose their importance to move the markets.
Technical Analysis
The 21-day SMA level of 0.6930 holds the key to pair’s further upside towards 0.7000 mark. Alternatively, a daily close below 200-day SMA
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.