AUDUSD - Short Pre US/China Negotiations Concluding

We still see AUDUSD moving lower despite the rebound over the past couple of days due to optimism surrounding recent trade talks between the US and China due to come to a conclusion today. This is due to our view that even if the US and China come to some sort of deal it would be not as favourable as expected to the Chinese economy which would in turn impact the Australian economy as a large majority of Australian exports are shipped to China. Additionally, the continued weakness of the Australian economy which could require further easing by the RBA would put downward pressure on the currency pair but we would not want prices move above resistance at 0.685.