“¢ Bulls remain on the defensive amid the recent escalation in the US-China trade tensions.
“¢ A modest pickup in the USD demand prompts some fresh selling in the past hour or so.
“¢ Traders now eye Wednesday’s important Aussie/Chinese data for some fresh impetus.
Having touched a session high level of 0.6960, the AUD/USD pair met with some fresh supply and dropped to fresh multi-month lows in the last hour.
With investors still absorbing shocks from the recent escalation in the US-China trade tensions, some positive trade-related comments by the US President Donald Trump provided a minor lift to the China-proxy Australian Dollar.
The uptick, however, lacked any strong conviction, rather quickly ran out of the steam and the latest leg of a sudden drop over the past hour or so could further be attributed to some renewed US Dollar buying across the board.
After staying relatively calm through a major part of Tuesday’s trading session, the greenback regained traction to build on the overnight goodish bounce from multi-week lows and is now placed comfortably above the 97.00 handle.
Bearish traders, however, seemed reluctant to place any aggressive bets amid absent relevant market moving economic releases from the US, which might help limit any deeper losses, at least for the time being.
Moving ahead, market participants now look forward to important releases of the Westpac Consumer Confidence Index and first-quarter wage price index from Australia, due during the Asian session on Wednesday.
This coupled with a slew of Chinese macro data will further influence the near-term sentiment surrounding risk-associated currencies – like the Aussie and provide some meaningful directional impetus to the major.
Technical levels to watch
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