• AUD/USD strengthened on Wednesday as unexpected shifts in White House policy positions triggered fresh selling of the greenback.
• U.S. President Donald Trump eased concerns by stepping back from earlier threats to dismiss Federal Reserve Chair Jerome Powell, and suggested that tariffs on China could be significantly lower than 145% if a trade agreement were reached with Beijing.
• Trump voiced optimism over a China trade deal, suggesting it could sharply lower current tariffs on Chinese goods.
• With few major data releases ahead, focus turns to Australia’s April 30 CPI, where a dip in core inflation below 3% could pave the way for a rate cut.
• At GMT 05:30, the Australian dollar was trading higher 0.44% at $0.6396 against US dollar.
• Immediate resistance is located at 0.6439(23.6%fib), any close above will push the pair towards 0.6516(Higher BB).
• Support is seen at 0.6329(38.2%fib) and break below could take the pair towards 0.6249(50%fib).
Recommendation: Good to buy around 0.6380 with stop loss of 0.6300 and target price of 0.6480
