FxWirePro: AUD/USD eases as risk appetite wanes

• AUD/USD eased  on Thursday  as a  the threat of a new round of U.S.-China trade restrictions curbed risk sentiment.

• U.S. President Donald Trump said on Wednesday that he expects to reach several agreements with Chinese President Xi Jinping during their meeting in South Korea next week, potentially covering topics from Beijing resuming soybean purchases to setting limits on nuclear weapons.

• The U.S. president downplayed the significance of China’s restrictions on rare earth magnet exports that have unsettled markets.

• U.S.-China trade tensions reignited after China imposed export controls on rare earths, prompting Trump to announce 100% tariffs effective November 1.

•Meanwhile, Australia’s Q3 CPI, due on October 29, is expected to determine whether the RBA will cut its 3.60% cash rate in November.

• Immediate resistance is located at 0.6531(38.2%fib), any close above will push the pair towards 0.6541(SMA 20).

• Support is seen at 0.6462(61.8%fib) and break below could take the pair towards 0.6440 (Lower BB).

 Recommendation: Good to sell around 0.6500, with stop loss of 0.6560 and target price of 0.6430