AUD/USD chart - Trading View
- AUD/USD extends marginal gains on the day, trades around 61.8% Fib at 0.6954 at 0400 GMT.
- Comments from the US President Trump on the US-China trade talks lift the overall risk sentiment and calm escalating trade war fears.
- Antipodeans buoyed across the borad. Aussie ignores despite disappointing Aussie business survey data.
- Australia's business confidence index remained unchanged at zero in April, contrary to expectations of an uptick to 1.
- Meanwhile, conditions index deteriorated to 3 from the March reading of 7. The markets were expecting a reading of 4.
- Technical studies show no change in the major's bearish bias. Trade war escalation fears not totally off the table, continue to weigh.
- Moreover, the RBA is also expected to maintain a dovish rhetoric, keeping the Aussie under pressure.
- Next major bear target lies at 0.6890 (trendline) ahead of 0.6862 (78.6% Fib).
- 5-DMA is immediate resistance at 0.6974. Break above eyes 21-EMA at 0.7027. Bearish invalidation only above 200-DMA.
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