AUD/USD looks for direction around 0.6750, trade headlines in the spotlight

AUD/USD fails to extend recent bounce off 0.6735 amid a lack of fresh catalysts.
US-China trade story keeps flashing mixed signals with the US bill concerning Hong Kong likely spoiling the mood.
Westpac Leading Index becomes the immediate catalyst with trade news being the major driver.

Anil Panchal FXStreet

Despite bouncing off at the day’s start, the AUD/USD pair fails to hold on to recovery gains while trading around 0.6750 during early Asian morning on Wednesday.

While the overall strength of the US Dollar (USD) continues exerting downside pressure on the rest of the majors, Aussie recently benefited from the shift in market mood after the US-China diplomats seem positive for future trade relations.

Though, the gains couldn’t last long mainly due to the Bloomberg story conveying the fact that the US House passed a bill that requires annual review of the situation in Hong Kong and avoids Beijing’s previous warnings to not interfere in the issue.

It can also be said that the latest upbeat comments by the Federal Reserve officials add to the strength of the greenback.

Moving on, Westpac Leading Index, -0.28% prior, seems to provide nearby direction to the Aussie while the US Retail Sales and Fedspeak could offer background music amid the louder trade noise to drive prices.

Technical Analysis

A two-week-old rising trend line, around 0.6730, acts as nearby support for the pair ahead of highlighting 0.6700 and 0.6670 to bears. On the upside, 0.6810 becomes the key barrier towards 0.6850 and September month top nearing 0.6900.

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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