Last week, trade negotiations between China and the United States affected the Australian dollar, which experienced a week of ups and downs. On Friday, local time, the 11th round of high-level Sino-US economic and trade consultations ended at the Washington. China said the two sides had better communication and cooperation, the negotiations have not broken down, China and the United States differences of opinion is a normal twists and turns in the negotiations. China stressed that the two sides should respect each other`s core interests and major concerns, only in this way can we promote the process of trade negotiations and build a good relationship between China and the United States. Trade negotiations between China and the United States will continue and are expected to meet in Beijing next time. Moreover, in an interest rate resolution last Tuesday, the Australian central bank withheld market pressure to keep interest rates unchanged, and the Australian dollar received a short-term boost. Monday`s series of data will continue to affect the Australian dollar, notably Australia`s consumer confidence index for the week, the April business economic index and the business confidence index, and Thursday`s labor market data. On Friday, the Bank of Australia said it would consider lowering interest rates if unemployment did not remain good or fall further, laying the groundwork for the next rate cut. The Bank of Australia has kept interest rates unchanged at 1.5 percent since 2016, and cutting rates, like New Zealand, must be driven by the situation in an effort to ease downward pressure on the country`s economic. On a technical level, the Australian dollar is now moving out of the falling wedge and has fallen below 0.700 integers. If it falls below 0.696, further weakness may occur. The upper resistance level is 0.7050.
