AUD/USD's rally off the 2018 low remains intact but appears to be on shaky ground ahead of this weekend's G20 meeting.
Technicals do suggest the rally can extend as the pair continues to hold near the daily cloud top while monthly RSI is rising with room to run.
AUD/USD longs will be fixated on the G20 meeting to see if they will be rewarded.
A good deal of the global trade tension has been priced into the market yet AUD/USD has avoided sliding to new long-term lows. If the G20 results lead to even small reductions in global trade issues, risk should rally and the greenback should trade heavy.
Reductions in long-U.S.
dollar and short-aussie positions could take hold if risk sentiment improves.
AUD/USD could then set a trajectory for November's high, a break of which would then target the 200-DMA, August's 0.7453 high and then big resistance in the 0.7480/00 zone.
Should trade issues escalate after the G20 the greenback should rally on safe-haven flows.
AUD/USD could then revisit the 2018 low.
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