Bullish view
- Buy the AUD/USD pair and set a take-profit at 0.6650.
- Add a stop-loss at 0.6450.
- Timeline: 1-2 days.
Bearish view
- Sell the AUD/USD pair and set a take-profit at 0.6450.
- Add a stop-loss at 0.6650
The AUD/USD exchange rate held steady as the US dollar weakened. It rose to a high of 0.6615, up from this month’s low of 0.6442. It remains about 2.87% from its highest point this year.
US Inflation Data and Trade Talks
The AUD/USD pair rose slightly as traders reacted to the latest Chinese economic numbers. A report by the statistics agency showed that China’s unemployment rate improved to 5.2% in October.
However, the country’s retail sales rose by 3% YoY in September, a drop from the previous month’s 3.3%. The GDP expanded by 4.8% in Q3, the slowest pace this year. Officials at the economy ministry maintained that the economy was still on track to hit 5%.
The Australian dollar is often seen as a proxy for the Chinese economy because of the volume of trade between the two countries.
Top Forex Brokers
Meanwhile, the AUD/USD pair rose slightly after the meeting between Donald Trump and Anthony Albanese, where the two countries signed critical minerals deals worth about $8.5 billion. The US is looking for alternative sources of these critical metals as China uses its market share as leverage in the ongoing trade war.
Looking ahead, the next key catalyst for the AUD/USD exchange rate will be the upcoming talks between Scott Bessent and his Chinese counterpart as they prepare for a meeting between Donald Trump and Xi Jinping. A potential deal between the two countries would be positive for Australia because of its trade relationship with China.
The AUD/USD pair will also react to the upcoming US consumer inflation numbers scheduled for Friday. This report will provide more information about the impact of Donald Trump's tariffs on prices.
graph_5760
AUD/USD Technical Analysis
The 12-hour chart shows that the AUD/USD exchange rate rose slightly and moved above the resistance level at 0.6500 after the Trump-Albanese meeting. It has remained above the ascending trendline that connects the lowest swings since June 23.
The pair also formed a small double-bottom pattern at 0.6450. This is one of the most bullish patterns in technical analysis.
The two lines of the Percentage Price Oscillator (PPO) have made a bullish crossover, while the Relative Strength Index indicator has pointed upwards.
Therefore, the pair will likely rise a bit and move to the key resistance level at 0.6600 ahead of the US CPI data. A drop below the ascending trendline will invalidate the bullish outlook.
Ready to trade our free trading signals? We’ve made a list of the top forex brokers in Australia for you to check out.