• AUD/USD rose on Thursday as risk sensitive Australian dollar surged following Trump's unexpected respite from the hefty reciprocal tariff.
• Trump kept a baseline 10% tariff while escalating the trade war with China by increasing the tariff rate to 125% on Chinese goods.
• Investors appear to be focusing narrowly on the 90-day window Trump has given to the world, downplaying the broader escalation of Sino-U.S. trade tensions.
•On Wednesday, China increased additional tariffs on U.S. products to 84% and imposed restrictions on 18 U.S. companies, mainly in defense-related industries.
•Australia's currency often serves as both a gauge of overall market sentiment and a liquid proxy for the Chinese market.
• At GMT 05:33, the Australian dollar was trading higher 0.70% at $0.6194 against US dollar.
• Immediate resistance is located at 0.6191(Daily high), any close above will push the pair towards 0.6237(61.8%fib).
• Support is seen at 0.6139(50%fib) and break below could take the pair towards 0.6043(38.2%fib).
Recommendation: Good to buy around 0.6170 with stop loss of 0.6120 and target price of 0.6250
