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  • AUD/USD supported by US-China trade optimism
  • Aussie looks to trade talks for a fresh direction.

The AUD/USD pair is seen in a phase of upside consolidation in early Europe, having refreshed two-week tops at 0.6781 during mid-Asia.

Trump-Liu meeting in focus

The spot staged a solid comeback from the Asian session lows of 0.6752 and rallied as much as 30-pips following the upbeat remarks from the US President Trump on the ongoing trade talks.  Speaking at a campaign rally in Minneapolis, Trump said that “we’re going to see if we can make a deal with China.” He added China has been very nice.

On Trump’s comments, the risk sentiment got a fresh boost and drove the higher-yielding/ China proxy, the Aussie, sharply higher. Over the last hours, the bulls are seen taking a breather, as they gather pace for the next move higher heading into the all-important trade meeting between Trump and Chinese Vice-Premier Liu He, scheduled later today at 1845 GMT in Washington.

With the trade talks likely to be the central focus point for the markets this Friday, any macro news from the US will only play second fiddle. The outcome of the crucial trade talks will determine the market tone in the coming days, as the focus now remains on the Reserve Bank of Australia’s (RBA) Oct meeting minutes, Chinese trade and Australian jobs reports.

AUD/USD Technical levels