AUD/USD having second thoughts about 0.76, RBA speech in the pipe for Wednesday

The AUD/USD is trading flat into Tuesday's Asia session, cycling just beneath the 0.7600 major level.

The Aussie pumped higher against the Greenback on Monday as broader markets rallied following headlines that the US and China have set aside their differences, at least for now, and have agreed to put any further tariffs while the two countries continue trade negotiations. Markets have reacted positively to the news, with commodities and other riskier assets rallying into the new week.

Tuesday sees the AUD struggling to maintain the positive flow, and the AUD/USD is struggling to develop bullish momentum in the Asia markets. With little data on the economic calendar for Australia today, Aussie traders are already looking to Wednesday's speech from Reserve Bank of Australia (RBA) head Philip Lowe. The RBA Governor delivers a speech at 08:00 GMT at the Australia-China Relations Institute in Sydney, where he will be discussing China's economy and financial markets, and its inter-woven relationship with Australia. China has been the subject of frequent trade headlines lately, and extra focus could be on Lowe's talking points.

AUD/USD levels to watch

FXStreet's Valeria Bednarik, on the Aussie's technical stance, which is showing signs of some bullish momentum but still sees risks ahead: "the pair is currently trading a couple of pips above the 38.2% retracement of its latest weekly slump, and presents a bullish short-term stance in the 4 hours chart, as the price is also well above its 20 and 100 SMA, while technical indicators entered positive territory, now losing partially its upward momentum, but far from changing course. The current level is key and if it is clearly broken, the recovery can extend up to 0.7660, the 61.8% retracement of the mentioned decline."

Support levels: 0.7520 0.7470 0.7435  

Resistance levels: 0.7590 0.7625 0.7660