• AUD/USD edged lower on Thursday as the greenback strengthened as investors focused on signs the trade war may be cooling down.
• Trump said Wednesday he sees potential trade deals with India, South Korea, and Japan, and a strong chance of a deal with China.
• The U.S. economy shrank in Q1 FY2025 for the first time in three years, as businesses rushed imports ahead of Trump’s expected tariffs.
• The dollar has struggled in the trade war due to Trump's shifting tariffs, which hurt growth outlook and investor confidence.
• Markets await Friday's non-farm payrolls report for clues on the Fed's policy direction.
• Immediate resistance is located at 0.6444(38.2%fib), any close above will push the pair towards 0.6537(23.6%fib).
• Support is seen at 0.6389(Daily low) and break below could take the pair towards 0.6355(50%fib).
Recommendation: Good to buy around 0.6390 with stop loss of 0.6320 and target price of 0.6480
