AUD/USD remains on a back foot around 0.7030, all eyes on RBA’s Kent

With traders awaiting statements from the RBA’s Kent, the AUD/USD pair trades near 0.7030 during the initial Asian trading on Tuesday.

Global investors kept cheering the US Dollar (USD) strength after the Fed’s last message before the blackout period reducing expectations of a heavy rate cut during July meet.

The US and China are moving closer towards a trade deal with China’s SCMP saying that the US diplomats are to visit Beijing for further trade talks during next week.

Risk tone remains little affected due to the absence of major catalysts. The 10-year treasury yields from the US remains around 2.05% by the press time.

Investors will now seek monetary policy clues from the Reserve Bank of Australia’s (RBA) Assistant Governor (Financial Markets) Christopher Kent who is scheduled to deliver a speech at the Bloomberg address in Sydney.

Even if the RBA recently struck less dovish statements, the overall bearish bias remains largely unaffected. As a result, comments favoring further easy monetary policy from the policymaker could offer additional weakness to the Australian Dollar (AUD).

After Kent’s speech, investors may shift their attention back to the US economic calendar as no major data/event is up for publishing at the Asian line of statistics.

Technical Analysis

100-day exponential moving average (EMA) level around 0.7020, 0.7000 round-figure and the current month bottom surrounding 0.6910 are on sellers’ radar unless witnessing a sustained break of 200-day EMA level surrounding 0.7100.