With all eyes on the Xi-Biden negotiations, the AUD/USD remains under pressure approaching 0.7350

The AUD/USD broke a three-day rally from a monthly low during Friday’s Asian session, and is now trading at the intraday low of 0.7370. In doing so, the Aussie pair reflects the market’s trepidation ahead of a crucial phone conference between US President Joe Biden and his Chinese counterpart Xi Jinping, which will address a variety of topics, including the Ukraine-Russia situation. China’s Foreign Ministry acknowledged ahead of the meeting that China and Russia met on March 17 to discuss security cooperation. It’s worth mentioning that Beijing has repeatedly refuted US assertions that it is ready to assist Moscow in its conflict with Ukraine.

On a different page, Reuters reported that China recorded 2,416 new confirmed coronavirus cases on March 17, up from 1,317 the day before, according to the country’s national health authorities. ” It’s worth mentioning that COVID-19 daily infections have been decreasing in the previous two days after reaching an all-time high.

On the contrary, news of industry output restarting in five Shenzen districts keep buyers optimistic. In other news, Turkey is attempting to establish contact between Russian President Vladimir Putin and his Ukrainian counterpart Volodymyr Zelenskyy, but has received no confirmation. Fears of a Russian default add to the risk-off mindset.

If the AUD/USD falls below the 0.7370 immediate range support, a decline to the 200-DMA level at 0.7300 is not out of the question. Alternatively, an ascending trend line from January 13, which was close to the 0.7400 level at the time of publication, posed a challenge to the pair’s upward movement.