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AUD/USD getting comfortable near 0.76 as bullish trend threatens to wash out

6/12/2018, 2:08:05 PMMarket Analysis
AUD/USD getting comfortable near 0.76 as bullish trend threatens to wash out

The AUD/USD is trading just above the 0.7000 major handle as markets contract ahead of the upcoming Trump-Kim summit due for Tuesday, which is expected to begin at 01:00 GMT.

US President Donald Trump will be meeting with North Korea's Kim Jong Un in Singapore today and traders are going to be keeping a careful eye on developments from the history-making summit as Trump attempts to pull a promise of denuclearization from North Korea's Kim, and some sort of progress to ending the still-on-paper war between the two Koreas.

Amidst the North Korea summit will be Australian Home Loans figures at 01:30 GMT, which is expected to improve slightly, ticking from the last reading of -2.2% to -1.9%. Simultaneously Investment Lending for Homes for April will also drop, which last printed a -9% contraction.

Australian markets were dark for Monday, and the Aussie is coming back into markets after a long weekend to celebrate the Queen's Birthday. With the AUD back in, the Asia trading session should see an uptick in trading volumes following the Trump-Kim summit.

AUD/USD Technical Analysis

The Aussie's bullish uptrend currently remains intact, but the pair is leveling off near the 0.7600 major level as volatility dries up. Technical indicators are middling as the pair begins to unwind in indecision.

Spot rate: 0.7608

Relative change: Negligible

High: 0.7610

Low: 0.7603

Trend: Bullish to flat

Support 1: 0.7600 (major psychological level)

Support 2: 0.7588 (current week's low)

Support 3: 0.7560 (one-week low)

Resistance 1: 0.7621 (current week's high)

Resistance 2: 0.7632 (one-week Fibonacci retracement level)

Resistance 3: 0.7676 (one-week high)