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  • AUD/USD is trading near 0.7100 during the early Asian session on Monday.
  • Latest news concerning the US-China trade deal and the US President’s criticism of the strong USD entertain momentum traders at the week-start.
  • AU building permits will be next in the traders’ radar.

AUD/USD is taking bids around 0.7100 at the start of Asian sessions on Monday. The pair opened up from the Friday’s close of 0.7075 to 0.7100 and then rallied to the intra-day high of 0.7105 soon before tanking on the lows near 0.7090. Recent news report concerning trade and the US President’s remarks on the USD strength is likely playing their role to offer an active start to the week.

The US President Donald Trump was cited criticizing the US Dollar strength and the Fed’s role in it by Reuters during his speech at the annual Conservative Political Action Conference in Oxon Hill, Maryland. Trump again took aim at the Fed’s Chairman Jerome Powell and the central bank’s monetary policy that’s fuelling the US Dollar.

The Wall Street Journal, on the other, provided some relief news by mentioning that the US-China “agreement is taking shape”.

Investors may now look forward to monthly building permits details, up for release at 00:30 GMT, in order to determine near-term price action. The January month housing market indicator is likely to remain flat at 0.0% after posting a decline of -8.4% during December 2018.

AUD/USD Technical Analysis

The AUD/USD should provide a decisive close under 0.7065 on the daily chart in order to please sellers with 0.7030, 0.7015 and 0.7000 supports.

If prices take a U-turn from present levels, 0.7130, 0.7180 and 0.7200 are likely nearby resistances that need to be conquered ahead of aiming the 0.7235 number to the north.