NZDUSD and AUDUSD actually became the outperformers among the major currency pairs.
Does it mean the market stopped loving USD, or it’s just a temporary correction of the most oversold currencies?
In order to answer the question we need to dig into fundamental drivers of recent commodity currencies sell-off.
The key factor of pressure for AUD was the news about China-US trade wars. The escalation of the conflict should bring the decreasing demand for imported by China goods. And guess, who is the key trading partner for Australia? China!
However, today there were rumors that China is ready for new round of talks, and it gives a hope that two big economies will be able to come to an agreement. If so, it may support AUDUSD on its further the way up.
The pair is currently trying to tests the high for the day at 0.7128. A move higher will open the way up to 0.7145.