AUD/USD testing the bear's commitments at 0.7180

• AUD/USD has found a bid on the back of the latest updates pertaining to the trade wars between the US and China.
• US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He on Monday.

AUD/USD has been lifted to test the 0.7180s in recent trade following news that both sides of the Phase 1 trade deal gave positive feedback in meetings today, headlines which has supported risk sentiment in Asia.

The US Trade Representative's Office said in a statement that both sides see progress on trade issues and are committed to making the Phase 1 agreement reached in January a success.

Key notes

• China says both sides agreed to continue pushing forward implementation of phase 1 trade deal.
• Says had constructive conversation on strengthening macroeconomic policy coordination.
• Says both sides have agreed to create conditions and environment to continue pushing forward phase 1 trade deal implementation.
• Both sides committed to taking steps necessary to ensure success of agreement.

COVID-19 cases on the decline

Meanwhile, Australia's second-most populous state of Victoria said on Tuesday that148 new cases were reported. This is positive for the currency as the numbers of cases are in decline. 

The initial outbreak in infections in Victoria forced authorities in to tighten restrictions on people's movements and order large parts of the state's economy to close but the southeast state has seen a slowdown in new cases in recent days.

However, the outbreak has been detrimental to the economy. In recent trade, the Australian Bureau of Statistics reported that employment fell by 1% over the month to Aug. 8, with the southeastern state of Victoria that is grappling with a fresh wave of coronavirus infections suffering a further blow.

Eyes on the Jackson Hole

Looking ahead, traders await the Jackson Hole as the main event this week.

Federal Reserve Chairman Jerome Powell’s keynote address should offer traders some further insights on the Fed’s review of monetary policy and the anticipated average inflation targeting.

AUD/USD levels