- Mixed trade-related headlines held investors from placing fresh bets.
- A subdued USD demand helped limit the downside, at least for now.
The AUD/USD pair struggled to register any meaningful recovery and held near the lower end of its weekly trading range, below the 0.6800 handle.
The pair consolidated the losses recorded over the past two trading session and remained on the defensive on the last trading day of the week amid persistent uncertainty over the future trade relations between the world’s two largest economies.
Focus remains on trade developments
In the latest developments, China on Thursday was reported to have extended an invitation to the US trade negotiations for another round of face-to-face talks. This was followed by a report by the South China Morning Post that the US may delay December 15 China tariffs regardless of the deal.
This comes a day after a report indicated that a phase one US-China deal was unlikely to happen this year and held investors from placing any fresh bets, which eventually turned out to be one of the key factors failing to provide any meaningful impetus to the China-proxy aussie.
Meanwhile, the downside remained cushioned, at least for the time being, amid a mildly weaker tone surrounding the US dollar, despite some follow-through pickup in the US treasury bond yields, further warranting some caution before positioning for a firm near-term direction.
Given that the incoming trade-related headlines might continue to play a key role in influencing the pair’s momentum, Friday’s US macro data – flash Manufacturing PMI and revised UoM Consumer Sentiment – might also be looked upon for some short-term trading opportunities.
Technical levels to watch
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