- The overnight trade optimism fades rather quickly and exerts some fresh pressure.
- Debelle’s comments further weighed on the already weaker China-proxy Aussie.
- Traders now look forward to US consumer confidence index for some impetus.
The AUD/USD pair came under some renewed selling pressure on Tuesday and eroded a part of the previous session’s goodish intraday up-move.
The incoming positive trade-related headlines revived hopes for the resumption of US-China talks and prompted some aggressive short-covering move around the China-proxy Australian Dollar.
It is worth reporting that the US President Donald Trump, speaking at the G7 summit in France on Monday, said that he had received phone calls from Chinese officials over the weekend urging new trade talks.
Trade uncertainties/Debelle’s comments weigh
However, the fact that China’s foreign ministry later denied news of any US-China phone calls raised doubts over the resolution of the trade issues in the near future and kept a lid on any strong follow-through up-move.
The pair failed to capitalize on the overnight recovery of nearly 100-pips from closer to yearly lows and was further weighed down by downbeat comments from the RBA Deputy Governor Guy Debelle this Tuesday.
During a speech at the Economic Society of Australia Luncheon in Canberra, Debelle highlighted the risk of a serious global economic downturn and reiterated the central bank’s readiness to ease monetary policy further.
Currently hovering around session lows, near mid-0.6700s, it would now be interesting to see if the pair is able to attract any buying interest at lower levels or the current pullback points to further intraday depreciating move.
Moving ahead, Tuesday’s US economic docket – featuring the release of the Conference Board’s Consumer Confidence Index will influence the US Dollar price dynamics and produce some short-term trading opportunities.
Technical levels to watch
Share
