FxWirePro: AUD/USD edges higher as trade deal between U.S. and EU fuels optimism

•   AUD/USD   edged higher on Monday as relief over a U.S. trade deal with the European Union underpinned risk sentiment .

•U.S. President Donald Trump announced on Sunday that the United States and the European Union had reached a trade agreement, which includes a 15% tariff on EU goods entering the U.S., along with significant commitments from the EU to purchase American energy and military equipment.

• Australia’s crucial quarterly inflation report, set for release on Wednesday, could determine whether a rate cut is justified next month.

• The Reserve Bank of Australia has been closely watching the Q2 CPI report for confirmation that inflation is finally under control.

• A significant upside surprise in the data could derail expectations for an August rate cut. Markets, which were blindsided earlier this month, are once again pricing in a near-certain 25 basis point cut by the RBA to 3.6% on August 19.

•  Immediate resistance is located at 0.6635(Higher BB), any close above will push the pair towards 0.6701(23.6%fib )

•  Support is seen at 0.6551(38.2%fib) and break below could take the pair towards 0.6469(Lower BB).

 Recommendation: Good to buy around 0.6520 with stop loss of 0.6450 and target price of 0.6640