Major US stock indices have snapped back higher. The White House is saying that Pres. Trump is mulling a 90 day tariff delay with the exception of China. Earlier today, Navarro said that tariffs were not a negotiation. The game is fixed. The price rise in stocks started before the comments from Hassett.
For the AUDUSD, it reacted to stocks turning around. On the way down, it was risk off. On the way up is risk on. However China terms may be a negative for the currency pair.
Technically, the price high did extend back above the low price from early February at 0.60874. It also moved above the 38.2% retracement of the move down from the February high at 0.61139. However, the price did stall against the swing low from January 13 at 0.61306. That high (and low from January) is now a target to get to and through to increase the bullish bias. On the downside moving back below 0.60874 – and staying below – would not be great for the buyers.
UPDATE: Now the WH is saying that “no one in the White House is saying that there would be a 90-day pause on tariffs”
This article was written by Greg Michalowski at www.forexlive.com.