- Outlook AUD / USD Displays Optimism in Australia after China and now they paused their trading war.
- Participants in the market reduced bets to reduce the rates of the supply funds this year.
- The United States will free up its crucial inflation figures.
Outlook AUD / USD Displays optimism for Australian dollar after China and the United States agreed to break the trading war. As a result, Aussie, also Prokija Yuan, gained. At the previous session the dollar strengthened more than Yuan, pushing the Australian dollar lower.
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On Monday, reports revealed that China and the United States agreed to bring down tariffs in the next 90 days, pausing their trade war. The news brought relief to traders who were concerned about the American recession. Accordingly, the dollar gained most of their peers, including the Australian dollar.
However, the profits were limited against Aussie, because China is the largest trading partner in Australia. Therefore, the news of Tariffs paused was either for the Australian currency as Iuan.
In addition, market participants reduced bets for reducing the rates of the supply funds this year. Futures are currently displaying only 56-BPS reduction this year. It is smaller pressure on policy makers to reduce borrowing costs. Therefore, they will continue to watch incoming data for the time for the next move.
Later in the day, the US will free up its crucial inflation figures. The declining report will facilitate worry about spikes due to tariffs, allowing food to apply the rate when the correct time.
AUD / USD Key events Today
- US CPPI m / m core
- US CPI M / M
- US CPI I / I
AUD / USD Technical Outlook: Bulls Trigger for a bump on 30th
On the technical page, the price AUD / USD is traded below 30-SMA with RSI under 50, suggesting bear bias. The bears recently took responsibility when the price did not break above the key level of 0.6500. The RSI made a divergence, indicating a weakness in the previous move.
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After that, the price broke under 30th and again withdrew level 0.6351. It paused here and stated to resolve the 30th resistance. However, given the Bear bias, AUD / USD would soon fall to re-set support from 0.6351. The break below this level will strengthen the bear bias by lower low.
On the other hand, if the price is broken above SMA, it may be reset resilience again at 0.6500 before breaking over or remaining in consolidation.
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