AUD/USD erases losses as Aussie Retail Sales beat estimates, PBOC keeps rates unchanged
|- AUD/USD trades flat near 0.7285 versus 0.7266 in early Asia.
- Australia's Retail Sales rose 1.6% in October, beating estimates.
- China held benchmark interest rates unchanged at 3.85%.
The bid tone around the Aussie dollar strengthened, helping AUD/USD reverse early losses after Australia's macro data beat estimates by a big margin.
As represented by Retail Sales, consumer spending rose 1.6% month-on-month in October, surpassing the 0.3% growth projection following September's 1.1% contraction.
The pair rose from 0.7275 to 0.7285, erasing the early decline following the Aussie data's release. At press time, the AUD/USD pair is trading largely unchanged on the day near 0.7285.
The upside is being capped alongside losses in the US stock futures. The risk sentiment has soured, possibly in response to the US Treasury Secretary Steven Mnuchin's decision to pull the plug on the pandemic relief for struggling businesses. With the additional fiscal spending looking increasingly unlikely, the Federal Reserve may have to do the heavy lifting of supporting the economy amid the second-wave of the coronavirus pandemic.
Further, the rising number of coronavirus cases in the US and fresh lockdown prospects look to be weighing over the sentiment. The People's Bank of China (PBOC) kept rates unchanged at 3.85% early today in a sign of confidence in the economic recovery. The status quo move has not had any impact on markets so far.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.