AUD/USD inches higher above 0.7050 despite USD strength
- Renewed trade optimism helps antipodeans gather strength against its rivals.
- US Dollar Index clings to daily gains above the 97 mark.
- The Chicago Fed's National Activity Index fails to trigger a market reaction.
The AUD/USD pair gained traction in the last hour and rose to a fresh daily high of 0.7057 supported by the latest headlines surrounding the U.S.-China trade conflict. As of writing, the pair was trading a couple of pips below its session highs, adding 0.2% on a daily basis.
Citing a source familiar with the matter, the South China Morning Post reported that U.S. officials including Treasury Secretary Mnuchin and Trade Representative Lighthizer were set to travel to China to meet Vice-Premier Liu He for the first round of face-to-face talks since the G20 summit.
Meanwhile, the data published by the Chicago Fed showed that the National Activity Index improved to -0.02 but fell short of analysts' estimate of 0.1. Nevertheless, ahead of this week's crucial PMI and durable goods orders data from the U.S., which could have a direct impact on the Federal Reserve's policy outlook, investors didn't pay any mind to this reading and the US Dollar Index was last up 0.15% on the day at 97.22.
There won't be any macroeconomic data releases from Australia on Tuesday. Christopher Ken, Assistant Governor at the Reserve Bank of Australia (RBA), is scheduled to deliver a speech in the early trading hours of the Asian session.
Technical levels to consider