AUD/USD bulls struggling to defend 0.7300 handle, Trump-Xi meeting in focus
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AUD/USD bulls struggling to defend 0.7300 handle, Trump-Xi meeting in focus

   “¢   The latest FOMC meeting minutes helps the USD to regain traction.
“¢   Disappointing Chinese PMI prints exert some additional pressure.
“¢   Focus remains on trade talks between Trump and Xi at the G20 summit.

The AUD/USD pair held on to its weaker tone through the early North-American session on Friday, with bears looking to extend the downslide farther below the 0.7300 handle.

The pair stalled this week’s goodish up-move and started retreating from fresh monthly tops after the latest FOMC meeting minutes reinforced market expectations for a December Fed rate hike move.

The minutes were released a day after the Fed Chair Jerome Powell’s dovish sounding comments and helped the US Dollar to regain some positive traction on the last trading day of the week.

Adding to this, today’s disappointing Chinese PMI prints for November further dented sentiment surrounding the China-proxy Australian Dollar ahead of the crucial Trump-Xi meeting on the sidelines of the G20 summit.

Meanwhile, the prevalent cautious mood around equity markets provided an additional boost to the greenback relative safe-haven status and further collaborated to the pair’s ongoing retracement slide.

Moving ahead, a scheduled speech by New York Fed President John Williams, followed by the release of Chicago PMI will now be looked upon to grab some short-term opportunities on the last trading day of the week.

Technical levels to watch

Immediate support is pegged near the 0.7275-70 region, below which the pair is likely to accelerate the fall further towards testing the 0.7220 level en-route the 0.7200 round figure mark. On the flip side, the 0.7315-20 horizontal zone now seems to act as an immediate resistance, which if cleared might now lift the pair further beyond overnight swing high level of 0.7344 towards reclaiming the 0.7400 handle.

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