Asian trade got off to a positive start today, thanks to the positive turn in trade talks between the US and China.

President Trump tweeted about the significant progress being made and has pushed back the proposed hikes in tariffs.

That meant that risk assets are likely to push higher for the session and the AUD/USD and NZD/USD are the key beneficiaries early on.

There has also been a better than expected retail sales print for the Kiwi with 1.7% vs 0.5% exp in what was a great result.

Outlook

The AUD/USD tested the major level at 0.7200 and pulled back last week on the back of some mixed news.

0.7050 and then 0.7000 are my next two key support levels below, with 0.7100 key support.

0.7200 is R1 and 0.7300 is R2 and the most recent highs sitting at 0.7400.

For the NZD/USD, the main level of interest is 0.6900 which we haven’t been able to crack of recent times.