• RBA minutes reiterate significant uncertainties over the economic outlook.
• Nervousness ahead of US-China trade talks further weighs on the Aussie.
The AUD/USD pair faded an Asian session spike to an intraday high level of 0.7144, with bears now eyeing a follow-through weakness below the 0.7100 handle.
The pair extended the overnight retracement slide from 1-1/2 week tops and witnessed some additional selling following the release of latest RBA monetary policy meeting minutes, reiterating significant uncertainties on the economic outlook.
Meanwhile, the minutes offered little insight over the central bank's next move in interest rates, which coupled with investors' anxiety ahead of a new round of US-China trade talks, exerted some fresh downward pressure on the China-proxy Australian Dollar.
The talks follow a round of negotiations that ended in Beijing last week, which ended without a deal. Officials from both sides, however, said that the negotiation had been fruitful and generated sufficient progress on contentious issues between the two.
Meanwhile, the higher-level talks will start on Thursday and will be led by US Trade Representative Robert Lighthizer. According to the White House statement on Monday, Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, economic adviser Larry Kudlow and trade adviser Peter Navarro would also take part in the talks.
With investors' focus glued on the upcoming US-China trade talks, today's relatively thin economic docket seems unlikely to provide any meaningful impetus, albeit the US Dollar price dynamics might produce some short-term trading opportunities.
Technical levels to watch
On a sustained break below the mentioned handle, the pair is likely to accelerate the fall further towards testing its next support near the 0.7060-55 region before eventually aiming to challenge the key 0.7000 psychological mark. On the flip side, the 0.7140-50 region now becomes immediate resistance, which if cleared might trigger some short-covering bounce and lift the pair towards reclaiming the 0.7200 round figure mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.