FxWirePro: AUD/USD gains as weak data weighs on greenback

• AUD/USD edged higher on Wednesday as soft U.S. economic data weighed on the greenback.

• 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.

• Market sentiment remains cautious after Tuesday’s softer-than-expected U.S. ISM Services PMI, which followed last Friday’s disappointing nonfarm payrolls report..

• The data reinforced concerns about a slowing U.S. economy and added to expectations that the Federal Reserve may begin cutting interest rates sooner than previously anticipated.

• The spotlight now turns to next Tuesday’s U.S. CPI release, which could be pivotal for shaping short-term rate expectations..

•  Immediate resistance is located at 0.6496(38.2%fib), any close above will push the pair towards 0.6521(20 SMA)

•  Support is seen at 0.6416(Lower BB) and break below could take the pair towards 0.6382(50%fib).

 Recommendation: Good to sell around 0.6500 with stop loss of 0.6580 and target price of 0.6460