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AUD extends gains on trade deal

The AUD is on a bit of a run at the moment and has managed to extend gains against the greenback over the past week. 

AUD
Source: Google

This has seen AUD/USD trade at a two-week high heading into some interesting events on the economic calendar. With the G20 meeting concluded and leaders agreeing to address global growth, even going as far as setting a 2.1% target for 2018, risk currencies have started the week with a bit of optimism. This has seen AUD/USD edge ever closer to the 0.8800 handle and looks to be gearing up to extend gains heading into a big day on the economic calendar tomorrow. 

The RBA’s monetary policy meeting minutes will be released and RBA Governor Glenn Stevens will speak at a dinner on economic development. AUD/USD has also got a kicker from the conclusion of the Australia-China trade deal.

China property prices tomorrow are likely to be a key driver of price action. The pair is on the verge of breaking a downtrend that has been in place since September and is also trading above the 50-day moving average. It certainly seems near-term momentum has shifted and I would be hesitant to sell into strength. While I feel a period of consolidation is likely, any moves towards $0.8900 could be a selling opportunity.

AUD/USD

AUD/USD

AUD/USD
Source: IG charts

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