• AUD/USD edged lower on Monday as renewed tariff threats from U.S. President Donald Trump reignited fears of a potential global trade war.
• Trade tensions escalated Saturday as Trump threatened 30% tariffs on Mexican and EU imports from August 1, citing the breakdown of negotiations on a broader deal.
• Looking ahead, Australia is set to release its employment report on Thursday, with expectations pointing to a gain of 20,000 jobs and an unchanged unemployment rate of 4.1%..
• The Australian labour market has shown unexpected resilience in recent months, providing the Reserve Bank of Australia with justification to maintain a cautious stance and delay any immediate shift toward more accommodative monetary policy.
•Markets are increasingly convinced that monetary easing is on the horizon. Any downside surprise in data would add weight to expectations for an August rate cut.
• Immediate resistance is located at 0.6621(Higher BB), any close above will push the pair towards 0.6673(23.6%fib)
• Support is seen at 0.6552(38.2%fib) and break below could take the pair towards 0.6532(SMA 20).
Recommendation: Good to buy around 0.6540 with stop loss of 0.6500 and target price of 0.6640
