FxWirePro: Aussie edges higher from new 5-month lows on revived US-China trade optimism, focus on FOMC for further direction

AUD/USD chart - Trading View 

AUD/USD edges higher from new 5-month lows at 0.6831 overnight on revived US-China trade optimism.

US President Trump is scheduled to meet his Chinese counterpart Xi ahead of the G20 meeting in Japan next week and markets optimistic about a deal.

The pair is trading rangebound on the day, focus on the FOMC meeting for further direction.

Bias leaning to the downside, Aussie unimpressed by soaring Dalian iron-ore prices which rallied nearly 6% to hit an all-time high of 812 yuan ($117.66) a tonne.

An unimpressive Westpac–Melbourne Institute Leading Index keeps check on upside.

The Westpac Index showed that the Australian economic growth will likely remain below trend through the rest of 2019.

Major trend in the pair remains bearish. Recovery capped below trendline support turned resistance at 0.6885.

Decisive break above 5-DMA could see gains till 21-EMA at 0.6926. Break above 21-EMA to see further upside.

Bears eyes major trendline support at 0.68. Break below will see dip till 0.6744 (Jan 3rd low)

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