Asian markets have opened on a positive note thanks to some positive data and the trade deal signed overnight.

Of course, all the focus yesterday was on the phase one deal, however, risk assets were generally a little up and down on the news.

President Trump said he will remove all tariffs after a phase two deal, but as yet, there hasn’t been any meaningful reduction in tariffs.

As a result, markets were positive about the result, which marks a significant milestone between the US and China, however, there are clearly some more hard yards ahead at the negotiating table.

Housing Data

Data has been thin on the ground this week, but we are still seeing improved housing conditions in Australia. Home loans increased above expectations with a 1.8% jump.

This is a number that is clearly linked to the RBA slashing rates three times last year and bringing rates to a record low 0.5%.

Sentiment is improving drastically in Australia at the moment and we are seeing that across many different areas of the property market.

This is likely to be a leading indicator and we are still waiting for the jobs situation to improve.

Of course, the RBA will not meet again until February, with the expectation still that they will cut rates further.

Levels

Despite the bullish look of the news the AUD/USD hasn’t been able to break the 0.6920 level. If it does this looks like it could be a good long position for a momentum scalp.

To the downside, 0.6850 is the downside target and a clear support level at present.

I’ll be waiting on a break of a key level before entering a momentum play at the moment as the fundamentals remain mixed at the moment.