AUD Going Up, China All for Peaceful Trade

Besides, today the AUD is feeling good because of the positive Chinese news regarding the ‘trade wars’. Xi Jinping, the Tianxia leader, said today’s morning that China had no intention to threaten the global trade process or change the existing world order. Just as before, Beijing persists in supporting free trade, reforms and opened borders, being against the ‘Cold War’.

Xi Jinping also pointed out that China’s goal was to expand market access, improve the conditions for the foreign business, and increase import. This is a whole new level of the talks with the US, taking into account the recent complications.

This way, there may be a pause in this trade war, that initially was started by the US in order to help the market recover and improve the competition conditions. Such things had, of course, happened before, but this time it came in very handy. This is very much positive for Australia, too, as China is their major trading partner.

Today’s macroeconomic stats revealed that the business sentiment index decreased by 7 points in March, with the previous value being -9 points. The market did not pay too much attention to this, as the traders kept watching the global news and events/

Technically, AUD/USD is trading within a few trends of different scale. The midterm trend is still descending, with the correctional movement towards the resistance; still, the downtrend is not fading out yet. The growth target, meanwhile, is the midterm trend resistance at 0.7825. In case this resistance gets broken out, the price may move to the upper projection channel, and the new target will be the resistance at 0.8000. As for the support and the possible downtrend target, it may be at 0.7590, which coincides with the midterm channel support.

Speaking short-term, technically, the downtrend here is at the pivotal stage, as the price is above the local resistance. The target of the new growth impulse may be located at 0.7805, which coincides with the short term projection channel resistance. Thus, the range between 0.7805 and 0.7825 is going to be the testing rage for the current midterm trend.

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.