AUD/USD is on the rounds near 0.7170 during early Asian sessions on Monday. The Aussie rose to the highest levels since February on Friday but couldn’t clear the ten-month-old descending trend-line stretched since June 2018. Fewer data, latest IMF comments and developments surrounding the trade negotiations between the US and China are likely immediate catalysts to watch.
While upbeat trade and credit data from its largest customer China was helping the Aussie buyers, softer than expected consumer sentiment index from the US and positive equities market added further strength into the buying sentiment.
Though, recent comments from the International Monetary Fund (IMF) signal the opposite direction to the Australian Dollar (AUD) than it previously was trading. The global lender highlighted the downside risks to the global economy. It previously cut macro growth forecast for the third time in a row towards the lowest levels since 2009.
Lack of major catalysts at the week-start, failure to surpass important resistance-line and negative comments from the IMF seems likely playing their role in portraying the Aussie pullback.