• AUD/USD pulled back from an eight-month high on Friday as investor sentiment turned cautious following another escalation in the global trade war by U.S. President Donald Trump.
• Late Thursday, President Trump unveiled a 35% tariff on all Canadian imports effective August 1, and signaled his intent to implement broad tariffs of 15% to 20% on several other countries.
• Earlier this week, Trump postponed the July 9 tariff deadline to August 1 for several trade partners to allow further negotiations, while simultaneously expanding the scope of the trade war by introducing new tariffs on additional countries..
• Australian dollar had found support after the Reserve Bank of Australia surprised markets on Tuesday by maintaining its cash rate at 3.85%, leading to reduced expectations of imminent rate cuts.
• Traders now turn their focus to next week’s Australian employment report, a key input for the Reserve Bank of Australia (RBA) in its ongoing policy assessments.
• Immediate resistance is located at 0.6637(Higher BB), any close above will push the pair towards 0.6687(23.6%fib)
• Support is seen at 0.6555(38.2%fib) and break below could take the pair towards 0.6486(July 8th low).
Recommendation: Good to buy around 0.6550 with stop loss of 0.6440 and target price of 0.6640
