AUD/USD's brief consolidation phase resolved with a new high being set after President Trump asked trade advisers to reconsider joining TPP nL1N1RP20L, but traders should treat the trade news with caution.
The market took the news as a boost to the global trade outlook.
AUD/USD's rally pierced the 55-DSMA but stalled short of the 200-DSMA.
A slight retreat from today's 0.7810 high ensued but techs suggest further gains are likely.
Bulls shouldn't lean too much on the prospects of the U.S. rejoining TPP.
There's speculation Trump may be using TPP as a negotiation tool in talks with China or to build a coalition of trade partners to influence policy in Beijing.
A coalition would be a tall task for Trump.
Push back from Japan, TPP's biggest economy, came last night after Chief Cabinet Secretary Suga said re-negotiating TPP would be difficult.
Trump himself noted he probably needs a substantially better deal than Obama negotiated for TPP before rejoining.
With so much uncertainty over Trump's intentions, AUD/USD bulls might focus less on TPP and more on techs.
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