AUD/USD seesaws near 0.7000 amid lack of data, trade positive sentiment

• Aussie buyers cheer expectations of an end to the US-China trade talk deadlock, soft USD.
• The trade headlines to keep directing market sentiment amid a short line of data.

Optimism surrounding the US-China trade deal fares better for the AUD/USD pair despite recent lack of data as the quote takes the rounds to 0.7000 during the early Asian session on Friday.

Not only because Australia’s largest customer China is a part of the much-awaited trade talks between the US President Donald Trump and his Chinese counterpart Xi Jinping but also because the expected positive outcome will have an upbeat impact on commodities that pleases the Antipodeans.

It should also be noted that the US Federal Reserve’s back foot from the previous hawkish comments and rising calls for a rate cut amid sluggish data also strengthen the Aussie pair.

While soft US Dollar (USD) and welcome sentiment concerning the global trade mechanism plays positive for the Aussie buyers, weak global bond yields cap the risk-on indicator’s upside.

The US 10-year treasury yields dropped close to 4 basis points (bps) on Thursday and flash 2.01% by the press time.

Moving on, Australia’s Private Sector Credit seems the only important data concerning the Aussie to watch during Asian session whereas the US Personal Spending, Chicago Purchasing Managers’ Index (PMI) and Michigan Consumer Sentiment Index could direct the moves during later part of the day.

The Australian credit growth seems to have increased to 0.3% from 0.2% whereas the US consumer sentiment might also have risen to 98.0 from 97.9. However, Chicago PMI is likely to have softened to 53.1 from 54.2 while the Personal Spending could have increased to 0.4% from 0.3%.

Technical Analysis

0.7022/24 are comprising 100-day exponential moving average (100-D EMA) and current month high becomes the key resistance for buyers to cross in order to visit 0.7050 and 0.7070 numbers to the north, failure to do so can trigger the pair’s pullback to 0.6960 and 0.6900 rest-points.