AUD/USD extends losses in tandem with S&P 500 futures, US Retail Sales eyed
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- AUD/USD tracks the fresh leg lower in S&P 500 futures.
- US-China tensions, virus fears and mixed Chinese data weigh.
- US dollar catches fresh bid ahead of US Retail Sales data.
Having faced rejection at 0.7000 on a few occasions in the last hours, AUD/USD ran into fresh offers, as the US dollar caught a fresh bid wave amid extension of the losses in the S&P 500 futures.
The risk-on market mood intensified in the European session, as traders digest the uneven economic recovery seen in China, with the consumer spending still lagging amid ongoing coronavirus crisis. The Chinese stocks posted their biggest fall in more than five months on Thursday, as the mixed data and UK’s ban on Huawei dampened investors’ sentiment.
Meanwhile, souring US-China diplomatic ties, in the face of the Trump administration’s bold responses to Beijing’s recent actions over the Hong Kong issue, also weighs on the higher-yielding assets such as the AUD. US National Security Council said President Donald Trump has not ruled out sanctions on Chinese officials.
Further, the intensifying virus spread in Japan, the US and Australia also keeps the investors unnerved, as the focus shifts to the US Retail Sales report for fresh cues on the global market sentiment. The US COVID-19 stats will also draw some attention in the NA session.
It's worth noting that the aussie traders shrugged-off the upbeat Australian jobs report released earlier in Asia this Thursday.
AUD/USD technical levels
The immediate support is seen at 0.6971/66 (5 & 10-DMA), below which the 20-DMA at 0.6928 will be tested. On the flip side, the recovery will likely face stiff hurdle at 0.7000 (key round figure). The next resistance is aligned at 0.7039 (July 15 high).
AUD/USD additional levels
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