AUD/USD jumps to two-week highs above 0.68 amid trade deal hopes

• AUD/USD extends Thursday’s rebound, up nearly 50-pips so far.
• Upbeat Michigan Prelim Consumer Sentiment data fails to rescue USD bulls.

• Trump-Liu trade meeting closely eyed for fresh trading impulse.

The AUD/USD pair is seen holding the higher near two-week highs of 0.6805, as mounting expectations that a US-China trade deal will be soon reached continue to underpin the sentiment around the China proxy, the AUD.

The recent tweet by the US President Trump only hints towards a trade deal being struck, as the second round of trade talks get underway in Washington. Trump said good things are happening at China trade talks. Meanwhile, some media chatter is doing the rounds that a partial trade deal could be announced soon ahead of the US President Trump and Vice-Premier Liu He trade meeting.

AUD/USD: Bulls now target 100-DMA at 0.6866

 The risk-on sentiment remains at full steam so far this Thursday and the safe-havens such as gold and the US dollar are dumped across the board, collaborating to the strength seen in the Aussie. The USD index shrugged-off the better-than-expected University of Michigan Preliminary Consumer Sentiment Index, as trade optimism continues to drive the USD price-action.

The spot is up nearly a big figure, currently trading around 0.6800. A fresh leg higher towards the 100-DMA at 0.6866 could be seen should the trade talks translate into a significant deal between both the countries.

Therefore, the outcome of the trade talks is eagerly awaited for the next direction in the prices. Looking ahead, the Aussie could also take some trading impetus from the Reserve Bank of Australia’s (RBA) Oct meeting minutes, Chinese trade and Australian jobs reports due on the cards next week.

AUD/USD Technical levels