FxWirePro: AUD/USD gaining momentum for a move towards 0.6500 level

• AUD/USD rose higher   on  Tuesday  as   optimism over easing U.S.-China trade tensions lifted risk sensitive Australian dollar.

• Washington and Beijing agreed on Monday to cut tariffs for 90 days, triggering a global market rally.

• Easing U.S.-China trade tensions have led traders to scale back expectations of sharp rate cuts, with Australia’s year-end rate now seen at 3.25%, up from 2.85% two weeks ago..

•On the data front, Australian business activity remained weak in April amid lower profits and investment hesitancy due to tariff uncertainties, while consumer sentiment saw a partial recovery in May.

• At GMT 05:00, the dollar was up 0.64% to 0.6414 against the New Zealand dollar.

•  Immediate resistance is located at 0.6433(38.2%fib), any close above will push the pair towards 0.6491(Higher BB).

•  Support is seen at 0.6357(38.2%fib) and break below could take the pair towards 0.6322(Lower BB).

 Recommendation: Good to buy around 0.6400 with stop loss of 0.6360  and target price of 0.6500