AUD: AUD/USD - Benefits From Resurgence In Risk Sentiment

USD/CNH spot tracks near 7.1790 in early Tuesday dealings. The pair rose 0.23% for Monday's session, amid broad USD index gains, as a flurry of trade/tariff headlines crossed. Spot USD/CNY finished up at 7.1762, while the CNY CFETS basket tracker was unchanged at 95.30 (per BBG). 

• For spot USD/CNH, we are just above the 20-day EMA resistance point. Intra-session highs from Monday were just beyond 7.1800, while the 50-day EMA sits close to 7.1980 in terms of further upside targets.
• Several Asian economy tariff levels were announced, including 25% for Japan and South Korea, which weighed on FX sentiment for these currencies (yen lost just over 1% versus the USD). CNH/JPY go to highs above 20.37, but tracks near 20.3430 in early Tuesday dealings. Other tariff announcements included those for Indonesia and Thailand, which were set above 30% (and no change from the original announcement for these economies).  
• These moves came after Trump's threat on BRICs aligned nations yesterday, with a potential 10% additional tariff on policies deemed anti-American. This weighed on EM FX more broadly, including CNH, albeit with its typical lower beta response to such announcements.
• Elsewhere, China is reportedly considering doubling an investment channel for local investors to purchase offshore bonds (see this BBG link for more details).
• The data calendar is empty today, with June CPI and PPI out tomorrow. 

• RES 3: 97.190 - High May 5 2023
• RES 2: 96.932 - 76.4% of Mar-Nov ‘23 bear leg 
• RES 1: 96.860 - High Apr 07
• PRICE: 96.660 @ 15:17 BST Jul 07
• SUP 1: 95.900 - Low Jan 14  
• SUP 2: 95.760 - Low 14 Nov ‘24
• SUP 3: 95.480 - Low Jan 11 2023 and a major support 

Aussie 3-yr futures traded weaker into the weekly close, but remain off lower levels for now. The recent strength is again challenging resistance at 96.730, the Sep 17 ‘24 high, leaving 96.860 as the next key level. Instead, a continuation lower would strengthen a bearish theme. This would refocus attention on 95.760, the 14 Nov ‘24 low. Conversely, a reversal higher would refocus attention on 96.860, the Apr 7 high.