AUD/USD hovers at a make or breaks around 0.6500, US Durable Goods Orders eyed
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AUD/USD auctions around 0.6500 and is preparing for a make or break move.
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The House arrest of China’s Xi Jinping has soured the market mood.
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Demand for US Durable Goods Orders is likely to decline amid soaring core CPI.
The AUD/USD pair has turned sideways after declining to near the psychological support of 0.6500 in the Asian session. The asset has shifted into a short-term inventory adjustment process, which will result in a sheer move ahead.
In the early Tokyo session, the asset printed a fresh two-year low at 0.6487 and a less confident pullback pushed the asset above 0.6500, Now, the market participants have capitalized on a pullback and a firmer US dollar index (DXY) is supporting more weakness in the major.
The DXY has displayed a stellar performance as the firmer negative market sentiment forced investors to safeguard themselves behind the first. The asset is aiming to recapture its intraday high at 144.52. The House arrest of Chinese leader Xi Jinping has spooked the market sentiment as it has triggered political instability in the world’s second-largest economy. It has significantly weakened the Australian dollar as the antipodean is a leading trading partner of China.
This week, investors will keep an eye on US Durable Goods Orders data, which will release on Tuesday. As per the preliminary estimates, the economic data will decline by 1.1%. Earlier, the core Consumer Price Index (CPI) landed higher at 6.3%, higher than the estimates of 6.1% and the prior release of 5.9%. This has trimmed the demand for Durable Goods Orders.
On the Aussie front, investors are awaiting the release of the monthly Retail Sales data. A decline in the economic data in times when inflation is sky-rocketing in the Australian economy will indicate that the retail demand is pretty low.
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