- AUD/USD: technicals lean bullish with longer lower monthly wick, bullish RSIs.
- AUD/USD: trade talk developments between China and US are key.
AUD/USD has topped out at a high of 0.7573, so far, as traders get behind the proxy trades to the China / US trade-related headlines. AUD/USD is currently trading at 0.7566 from a low of 0.7502.
US Tsy Sec. Mnuchin: meaningful progress was made in the latest China trade talks
The upside kicked off with a bullish opening gap in Asia on the trade headlines where on Saturday, US Treasury Secretary Steven Mnuchin, announced that trade wars with China are on hold and just today, in a CBNC interview, he was noted saying that meaningful progress was made in the latest China trade talks.
AUD/USD takes flight as dollar pulls back from five-month highs
Of course, the US dollar was bid-up on the news and reached a fresh five-month high of 94.05 in the DXY, but it has since dropped back, along with US yields from 3.08% in the 10’s down to 3.06% – the lows for today so far.
AUD/USD has been the leading pair on Monday, rallying from aforementioned 0.7502, (cross buying in AUD/NZD underpinning the upside in the Aussie, (1.0890-1.0928)). On a light calendar for the Aussie for the week ahead, eyes will be on RBA’s Lowe (May 23rd).
AUD/USD levels
Technicals lean bullish with positive RSI and with a long lower wick on the monthly charts. The 21-D SMA has been pierced and eyes are to the 0.76 handle. Key upside target stays with the rising 200-D SMA on the 0.78 handle and thereafter, the 0.7910 level will be in focus. 0.7420 guards a sell-off to 0.7320 double bottom lows.
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