- Welcome consumer sentiment, upbeat comments from RBA’s Debelle please Aussie buyers.
- Traders may concentrate on the key risk events and the US-China trade talks for fresh impulse.
With the upbeat Australian consumer sentiment and absence of dovish comments from the RBA’s Assistant Governor, the AUD/USD pair is on the bids around 0.7130 during early Wednesday.
The Aussie recently surged to the 100-day simple moving average (SMA) after the Reserve Bank of Australia (RBA) Assistant Governor Guy Debelle praised economic growth and domestic labor market.
Optimism was also portrayed by the Westpac consumer confidence index that surged to +1.9% versus -4.8% previous contraction.
However, buyers remain on sidelines ahead of the key US data/events that negatively affect the global risk sentiment. 10-year US treasury yield confirms that same as they were in the negative zone near 2.50%.
Looking forward, March month inflation numbers from the US and minutes of the latest FOMC meeting will be in market focus. The inflation numbers are overall expected to regain strength as consumer price index (CPI) could rise to 0.3% from 0.2% on MoM basis and might also increase to 1.8% from 1.5% prior on yearly basis. The ex-food and energy version of the CPI might remain unchanged to 2.1% on yearly format but could increase to 0.2% from 0.1% on MoM basis.
For the minutes of the latest Federal Open Market Committee (FOMC) monetary policy meeting, investors might look for further signals confirming no rate-hikes during 2019.
It should also be noted that the US and Chinese lawmakers will once again discuss on trade deal during today, as confirmed by the US Treasury Secretary Steve Mnuchin. China is Australia’s largest consumer and any positive outcome for it can be well taken the Aussie buyers.
AUD/USD Technical Analysis
The AUD/USD pair needs to provide a successful break of 0.7145/50 resistance-confluence, comprising 100-day simple moving average (SMA) and seven-week-old trend-line to aim for 200-day SMA level around 0.7200.
Given the prices fail to surpass 0.7150, 0.7130, 50-day SMA level of 0.7115 and 0.7000 could offer nearby supports ahead of highlighting the key 0.6980 level.
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