AUD/USD flirts with 0.7150 on US-China trade optimism

• AUD/USD rose to 0.7150 during early Asian sessions on Monday.
• Upbeat sentiments concerning the US-China trade deal benefited the pair recently.

The AUD/USD pair clings to 0.7150 during initial Asian trading session on Monday. The pair is trading positive after the news broke that the US President is ready to postpone the tariff hikes on China considering welcome developments at the trade negotiations. Trump also signalled a summit between him and Chinese President that will conclude a trade agreement.

During last-week, the Chinese delegation led by Vice Premier Liu He visited Washington for the trade negotiation with their US counterparts. Both the sides registered noticeable progress in spite of giving fewer details. However, Trump sound overly optimistic about the trade deal as his recent tweets conveyed.

The US President praised substantial progress on trade talks with China over issues like intellectual property protection, technology transfer, agriculture, services, currency, and many others. He then went ahead to signal an increase in the US tariffs on China that was supposed to take place from March 01 if both the sides fail to reach any agreement on trade.

Additionally, Trump also tweeted that he is planning for a summit between him and the Chinese President XI Jinping at his Mar-a-Lago resort in Florida to conclude an agreement.

With the brighter chances of a trade deal between the world’s two largest economies, strain to China’s economic data due to trade protectionism is likely to east. As a result, world’s largest industrial player and Australia’s biggest customer may regain its traction lost recently and the same can be positive for the commodity basket and the Australian Dollar (AUD) as well.

AUD/USD Technical Analysis

The pair is likely running towards 0.7180 resistance, a break of which can escalate its rise to 0.7220 whereas 0.7255 and 0.7300 may challenge buyers then after.

On the downside, 0.7110 and 0.7055 are likely immediate supports for the pair ahead of highlighting 0.7000 round-figure.