AUD/USD: Buyers and sellers seek fresh clues to break the range

Given the recent risk-on confronting broad US Dollar (USD) strength, the AUD/USD pair keeps inside a short-term trading range while taking rounds to 0.6780 on early Thursday morning in Asia.

The US President Donald Trump’s U-turn on the prospects of a trade deal with China, from previous “maybe” to doing “great”, seems to have gained major market attention off-late while his ever unlike of the Fed Chairman Jerome Powell’s policies failed to get noticed.

Recently, the International Monetary Fund (IMF) warned the US and China that hiking tariffs only harms both domestic and global growth.

Minutes of the July month Fed monetary policy meeting keeps the gate open for further rate cuts while considering the latest 0.25% rate cut as a mid-cycle adjustment. It should, however, be noted that some among the policymakers were not in support of such a move.

Market’s risk tone recently surged with the US equity benchmarks gaining near 1.0% by the closing time whereas Treasury yields also portraying the recovery.

With no major data left for publishing the Aussie moves are more likely to rely on trade/political news ahead of the key Jackson Hole Symposium that begins late-Thursday in the US.

Technical Analysis

The 0.6822-0.6745 area continues to limit the quote with the latest bullish signals by 12-bar moving average convergence and divergence (MACD) on the daily chart increases the hope for witnessing June low of 0.6831. If prices decline below 0.6745, 0.6700 and monthly bottom around 0.6677 can please the bears.