AUD/USD: rising ahead of President Xi key note speech

• All eyes turn to Boao Forum in China, where President Xi.
• AUD/USD is otherwise bid on the back of potentially easing trade war tensions.

AUD/USD is tracking risk sentiment with AUD/JPY picking up half a yen as US equities soar. Currently, AUD/USD is trading at 0.7704, up 0.42% on the day, having posted a daily high at 0.7712 and low at 0.7652.

Markets are enthused with the signs that Trump may have softened his approach in a trade spat with China.  Trump alluded to hopes an agreement could be reached between China and the US on trade over the weekend. “China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property,” Trump tweeted. 

President Xi to make key note speech, will trade wars be a theme?

The Aussie has been tracking the developments very closely with its close ties to China and the commodity sector. It was trading at 0.7642 vs the dollar at one stage, below the descending support line, but it has since recovered as tensions begin to calm. However, all eyes will be on the Boao Forum in China, where President Xi will speak where markets wonder whether we will we get more paeans to free trade, as at Davos? 

AUD/USD levels

AUD/USD leans bullish with RSIs biased up, breaking up from the 30 level with the price bid up from the rising support trend line. On a break higher and through the rising 200-DSMA just above the 0.78 handle,  0.7910 is open. On a break of the support line, at 0.7640, 0.7504 could be the last defence to 0.7420.