• AUD/USD eased slightly in subdued trading as investors focused on the upcoming U.S.-China meeting in Beijing.
• Markets await the U.S.-China meeting in Beijing, with easing tensions likely to support the Australian dollar due to strong Australia-China trade ties.
•Discussions between President Trump and President Xi are expected to cover the Iran war, Taiwan, trade, and broader business ties, with markets watching closely for any signs of easing tensions.
• Australia’s 2026/27 federal budget posted an underlying cash deficit of A$31.5 billion, slightly better than mid-year projections.
• The broader backdrop continues to be shaped by the US-Iran conflict, the Strait of Hormuz remains effectively closed.
• Immediate resistance is located at 0.7272 (23.6%fib), any close above will push the pair towards 0.7303(Higher BB).
• Support is seen at 0.7188(SMA 20) and break below could take the pair towards 0.7120(38.2%fib).
Recommendation: Good to buy around 0.7230 with stop loss of 0.7170 and target price of 0.7290
