FxWirePro: AUD/USD rises sharply following trump's tariff pause

• 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