AUD/USD: Bulls await RBA Lowe to extend the recent upmove

The AUD/USD pair stretched previous gains forward to 0.7245 during early Wednesday.
Positive clues for the US and China trade talks offered better start to the Aussie.
RBA Governor’s speech will be in forcus for now.

Anil Panchal FXStreet

The Australian Dollar trades positive around 0.7245 against the USD on Wednesday’s Asian start. The AUD/USD pair carried forward Tuesday’s gain overnight on news of fresh US-China trade talks and await the Reserve Bank of Australia (RBA) Governor Philip Lowe’s speech for a fresh impulse on price direction.

The Australian Dollar declined during early Tuesday due to -0.4% MoM contraction in December retail sales versus 0.0% market consensus but the downturn was tepid after RBA omitted the rate cut signals and rather praised strong employment growth.

Carrying the overnight gains forward was the Reuters report that the US Treasury Secretary Mnuchin and the Trade Representative Lighthizer may reach Beijing next week in order to escalate the trade talks with their Chinese counterparts.

The Aussie traders now await comments from the RBA Governor Philip Lowe at the National Press Club, in Sydney. Lowe may be questioned on the central bank’s recent act of playing down on the growth and inflation forecast but still managing to remain optimistic about employment.

AUD/USD Technical Analysis

The AUD/USD is again heading for the 0.7270 immediate resistance before aiming for the 200-day simple moving average (SMA) level of 0.7290 and the 0.7300 trendline resistance.

On the downside, the 0.7220, the 0.7200 and the 0.7170 are likely nearby supports for the pair traders to watch in case of a pullback.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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