AUD/USD: Traders on the sidelines awaiting Brexit vote, with ears out for trade-headlines

• AUD has  performed well over this month.
• AUD/JPY could come into play on Brexit voting.

AUD/USD has not been particularly eventful on Tuesday, travelling between 0.6850 and 0.6883 and flat around the 21-hour moving average at the time of writing in the 0.6860s.

The focus has been elsewhere, with trade-war and US politics taking a back seat to politics in the Commonwealth with Brexit voting and Canadian elections – Brexit voting will take place at the top of the hour and could have a wide impact on the FX sphere – including the Aussie due to the wider implications in global growth – AUD/JPY could come into play.

• Brexit: UK Parliament to vote on PM Johnson’s Brexit deal and timetable – live stream

Meanwhile, both the Kiwi and Aussie have performed well over this month so far with the optimism about a trade deal between the US and China. “If optimism about a trade deal between the US and China rises further it is likely that the AUD and the NZD will be among the best performer and the JPY the worst,” analysts at Rabobank argued – “A caveat is that any reprieve on a phase 1 trade deal could be short-lived.”

• WH advisor Larry  Kudlow on trade wars: Phase 1 ‘unresolved issues’ could spill over to phase 2

AUD/USD levels