• AUD/USD regained some ground on Monday as investors digested the latest salvoes in the U.S.-China trade war were more symbolic than substantive.
• Australian dollar had crumbled on Friday when U.S. President Donald Trump threatened to slap 100% tariffs on China by November 1 .
•Despite the tariff rhetoric, Trump’s softer stance on China over the weekend gave analysts confidence that the move was tactical and that a middle ground might be reached.
• Currencies from Australia and New Zealand, backed by commodity-driven economies, typically serve as risk hedges when global markets face turbulence.
• Looking ahead, traders await the RBA’s September meeting minutes on Tuesday and Australia’s September employment report on Thursday..
• Immediate resistance is located at 0.6546(38.2%fib), any close above will push the pair towards 0.6587(SMA 20).
• Support is seen at 0.6474(61.8%fib) and break below could take the pair towards 0.6415 (Aug 22nd low).
Recommendation: Good to buy around 0.6540, with stop loss of 0.6600 and target price of 0.6480
