AUD/USD loses traction, retreats to 0.6900 area
- SCMP says US-China trade war is not over yet.
- US Dollar Index clings to modest daily gains near-mid-97s.
- Coming up: Trade Balance data from China on Tuesday.
The AUD/USD pair inched higher during the Asian trading hours as markets started the week on a positive note before the US and China sign the phase-one of the trade deal on Wednesday. After climbing to a daily high of 0.6920, however, the pair reversed its direction and turned flat on the day near 0.6900.
US-China phase-one deal details awaited
Over the weekend, US Treasury Secretary Mnuchin noted that the phase-two negotiations will start following the signing of the phase-one deal and announced that the details of the agreement will be published ahead of the ceremony on Wednesday. On the other hand, citing Taoron Notes, a social media account linked to the Chinese government, the South China Morning Post (SCMP) argued that the trade war was not over yet there were many uncertainties down the road.
Meanwhile, the greenback seems to be finding demand after suffering modest losses against its rivals on Friday following the uninspiring labour market data. As of writing, the US Dollar Index was up 0.13% on the day at 97.48, making it difficult for the pair to stay in the positive territory.
There won't be any macroeconomic data releases from the US or Australia and investors will be paying close attention to the Trade Balance data from China during the Asian session on Tuesday.
Technical levels to watch for