AUD/USD seesaws near 0.6880 ahead of domestic data

Looming rate cut compresses the Aussie gains.
Latest positive news from the US-China trade front pleases buyers ahead of domestic data.

Anil Panchal FXStreet

The AUD/USD pair trades little positive near 0.6885 during the early Asian session on Wednesday.

The Aussie pair witnessed downpour on Tuesday after RBA minutes and comments from Governor Lowe highlighted chances of a rate cut in June.

However, latest statements from China’s Ambassador to the US, Cui Tiankai, seems to brighten the mood as it signals brighter chances to break the impasse in the US-China trade talks and China’s readiness to buy more goods and services from the US.

Risk tone in the market remains a bit up with the US 10-year treasury yields holding more than two basis points’ gain to 2.428%.

Traders may now look forward to April month Westpac leading index and first quarter (Q1) 2019 construction work done data for fresh impulse. While Westpac gauge grew +0.2% in its previous release, construction work is likely to reverse previous -3.1% decline with 0.0% mark.

FOMC minutes will also be on the investors’ radar during the US session as global central bankers have started showing readiness for rate cuts.

Technical Analysis

Pair’s failure to slip beneath latest lows of 0.6860 can trigger its pullback to A downward sloping trend-line since April 18, at 0.6930 now, a break of which can recall 0.7000 and 0.7030 on the chart.

Should prices slip under 0.6860, January 2016 low surrounding 0.6830 and 0.6800 could flash on the bear’s radar.

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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