- Risk sentiment strengthens on the latest news concerning the US-China trade negotiations.
- Political tension between the US and Iran, coupled with lack of data/events, limits upside momentum.
With the trade positives news headlines joining the upbeat weekly consumer sentiment data from Australia, the AUD/JPY pair seesaws near 75.90 during the early Asian session on Tuesday.
The Wall Street Journal quotes the White House spokesperson while confirming that the US President Donald Trump agreed to tech leaders’ request for speeding up the licensing process for selling components to China’s Huawei.
Additionally, China’s SCMP has noted that trade negotiators from the US and China will meet in Beijing next week for further talks.
Contrast to the aforementioned trade positive headlines, political tension between the US and Iran remains on the card as the US Secretary of State Mike Pompeo recently announced readiness to punish Chinese firms importing oil from the Gulf nation.
Risk takers have recently been cheering the US Fed communication to tame the policy bears. The US 10-year treasury yield, generally followed to gauge market’s risk sentiment, rises nearly 2 basis points to 2.06% by the press time.
Elsewhere, Australia’s weekly ANZ Roy Morgan Consumer Confidence data crossed 115.8 prior to 116.3.
With no major data/events left for publishing, investors may keep an eye over the trade/political headlines for fresh impulse.
Technical Analysis
The quote follows a range between the 21-day exponential moving average (EMA) level of 75.67 and 76.34/28 with 75.00 and 77.00 being likely following numbers to watch during either side breaks.
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