AUD/USD finds a cushion around 0.6500 ahead of Australian Retail Sales and US Durables
|- AUD/USD is expected to continue its three-day losing streak after dropping below 0.6500.
- The USD index showed a marginal correction as the White House and Republican leaders met virtually on Thursday.
- Australian Retail Sales are seen expanding by 0.2%, lower than the prior expansion of 0.4%.
The AUD/USD pair has found an intermediate cushion near the round-level support of 0.6500 in the early Asian session. The Aussie asset has registered a three-day losing streak and is expected to continue the downside spell after dropping below the aforementioned support. A cautious market mood has trimmed the appeal for risk-perceived currencies sharply.
S&P500 delivered a decent recovery on Friday as the Federal Reserve (Fed) is expected to pause its rate-hiking regime in June’s monetary policy meeting. Gains in the 500-US stocks basket were supported by a solid recovery in technology and financial stocks.
The US Dollar Index (DXY) remained super solid on Thursday and refreshed a two-month high at 104.31 amid an absence of further development in US debt-ceiling issues. In the late New York session, the USD index showed a marginal correction after Reuters reported that the White House and Republican leaders met virtually on Thursday and are near cracking bipartisan, which inculcates large spending cuts and a raise of the government’s $31.4 trillion debt-ceiling.
Going forward, the United States Durable Goods Orders (April) data will be of utmost importance. The economic data is seen contracting by 1.0% against an expansion of 3.2% reported earlier.
On the Australian Dollar front, investors are keeping an eye on monthly Retail Sales data (April). As per the consensus, households’ demand is seen expanding by 0.2%, lower than the prior expansion of 0.4%. Declining retail demand would allow the Reserve Bank of Australia (RBA) to keep interest rates steady ahead.
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