AUD/USD retraces daily gains as shift in Fedspeak strengthens greenback
|- Greenback buyers emphasize the NY Fed’s statements pouring cold water on the President Williams dovish comments.
- The US-China diplomats are likely to meet in-person, the US tech firms also exert pressure on the Trump administration to remove Huawei ban.
AUD/USD fails to extend its recent upward trajectory as it trades near 0.7070 heading into the Europe market open on Friday.
While dovish Fedspeak and domestic employment data pleased the Aussie buyers to clock in the best G10 pair status on Thursday, the early Friday statements from the New York Fed nullified effects of the President John Williams comments favoring 50 basis points (bps) Fed rate cut.
The US and Chinese trade negotiations are likely to be fast-tracked, as per Reuters, whereas American Tech giants’ pressure to remove the ban on selling equipments to China’s Huawei also spreads trade optimism.
On the negative side, the US recently said that it downed Iran’s drone and Iran is also complaining to the United Nations (UN) about the UK Navy seizing its oil tanker could weigh on the global risk sentiment.
While the Asian stocks benefited from the recent market recovery, the US 10-year treasury yield clings to yesterday’s close of 2.04% by the press time.
Moving on, second-tier data from the US and final round of Fedspeak, before the policymakers sneak in the blackout period, could keep traders on edge while US-China developments will also contribute towards busy Friday.
Technical Analysis
A bullish Marubozu candle formed yesterday continues to favor the pair’s run-up towards 200-day exponential moving average (EMA) level of 0.7100 unless the quote slips beneath 0.7050/45, which in turn could recall 0.7000 back to the chart.
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