FxWirePro: AUD/USD firms as U.S.–China trade progress boosts risk appetite

•  AUD/USD held firm on Tuesday as signs of progress in US –China  trade negotiations supported risk sentiment.

•U.S. officials said senior negotiators from China and the United States have settled on a framework for a potential deal, setting the stage for a meeting between President Trump and President Xi on Thursday.

• Comments from RBA Governor Michele Bullock on inflation also lent support to the Aussie, as traders anticipated a cautious stance from the central bank before the release of Q3 CPI figures.

• The upcoming Australian Q3 trimmed mean CPI, due at 0030 GMT on Wednesday, is expected to rise 0.8% quarter-on-quarter and 2.7% year-on-year.

• Markets now assign about a 40% chance of a 25-basis-point cut in the RBA’s 3.6% cash rate at its November 4 meeting, down from 60% earlier on Monday, while one rate reduction remains fully priced in by February.

•  Immediate resistance is located at 0.6564(50%fib), any close above will push the pair towards 0.6613(Oct 9th high)

•  Support is seen at 0.6538(SMA 20) and break below could take the pair towards 0.6505(38.2%fib).

 Recommendation: Good to buy   around 0.6550 with stop loss of 0.6480 and target price of 0.6620