Aussie Soars Following Potential US-China Trade Deal

Fundamental Analysis

*Trade Talks: The Australian dollar has strengthened against the U.S. dollar following President Donald Trump’s suggestion of a possible trade deal with China. Recent developments signal a potential easing of U.S.-China trade tensions. On Thursday, Trump expressed optimism about reaching an agreement, stating that a deal remains “possible” despite ongoing disputes. He also mentioned the potential for Chinese President Xi Jinping to visit the U.S., though no specific timeline was given. Meanwhile, Beijing highlighted the importance of “mutual respect” in trade negotiations, reinforcing its commitment to fair discussions. Given Australia’s strong trade ties with China, this positive outlook has improved market sentiment toward the Australian dollar.

Technical Analysis

*Technical Breakout: AUDUSD was traded higher following prior breakout above the previous resistance level 0.63800. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to likely extend its gains.

* Resistance and Support: : If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 0.65400. Conversely, a potential reversal is also to be expected and the price could head back towards 0.62200 after it breach back below the level 0.63800.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, traders will focus on data from the U.S which includes S&P Global Manufacturing and Services PMI, and speeches from U.S. President Donald Trump.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Australia data, global market updates, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.

Disclaimer

This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.

This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.

PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.