FxWirePro: AUD/USD slips amid caution on US-China trade framework

• AUD/USD eased slightly on Wednesday as markets remain cautious despite a provisional U.S.-China trade framework reached in London.

• Officials from the United States and China agreed on a framework to put their trade truce back on track following two days of intensive negotiations in London.

•   The announcement of a tentative trade framework initially offered a brief lift to risk sentiment, but markets remain wary without concrete commitments or signed agreements. This lack of clarity has limited AUD/USD upside, especially given Australia’s deep trade ties to China.

• The main event on the global economic calendar today is the release of the U.S. Consumer Price Index (CPI) data for May.

• Markets expect headline CPI to rise 0.2% and core CPI 0.3% in May, lifting annual inflation to 2.5% and 2.9%, respectively.

•  Immediate resistance is located at 0.6533(23.6%fib), any close above will push the pair towards 0.6561(Higher BB).

•  Support is seen at 0.6481 (June 6th low) and break below could take the pair towards 0.6425(38.2%fib).

 Recommendation: Good to buy around 0.6500 with stop loss of 0.6430  and target price of 0.6580