• AUD/USD edged higher on Monday as optimism over easing U.S.-China trade tensions lifted market sentiment.
• On Sunday, U.S.-China trade talks wrapped up with both sides expressing optimism.Washington pointed to a deal to cut the trade deficit, while Beijing cited a key consensus achieved.
• Investors are hopeful that the White House will soon reduce the 145% tariff on Chinese goods, even if only to the 60% level initially proposed by President Donald Trump.
•Meanwhile, easing of global trade tensions led investors to adjust their expectations, scaling back predictions for domestic interest rate cuts.
The Reserve Bank of Australia is still expected to implement a quarter-point reduction in the current 4.10% rate next week, although the prospect of a larger cut has become considerably less probable.
• Immediate resistance is located at 0.6452(22d April high), any close above will push the pair towards 0.6499(23.6%fib).
• Support is seen at 0.6393(38.2%fib) and break below could take the pair towards 0.6310(Lower BB).
Recommendation: Good to buy around 0.6410 with stop loss of 0.6360 and target price of 0.6500
