• AUD/USD edged higher on Monday as signs of thawing trade tensions between Washington and Beijing boosted global risk sentiment.
• Investor mood brightened after U.S. President Donald Trump signaled that a 100% tariff on Chinese imports would be unsustainable and confirmed plans to meet with President Xi Jinping, easing fears of an escalating trade confrontation.
• Trump said he would meet with Chinese President Xi Jinping and that he thought things would be fine with China.
• Australian Prime Minister Anthony Albanese is set to meet President Trump in Washington later Monday, with trade and regional security expected to feature prominently on the agenda.
•Technical signals are bearish as RSI is at 42, daily momentum studies 14and 21 DMAs are trending down.
• Immediate resistance is located at 0.6514 (50%fib), any close above will push the pair towards 0.6555 (SMA 20).
• Support is seen at 0.6443(38.2%fib) and break below could take the pair towards 0.6418 (Aug 25th low).
Recommendation: Good to sell around 0.6510, with stop loss of 0.6600 and target price of 0.6430
