AUD/USD retraces daily gains, fails to hold above 0.70
|- Antipodeans gather strength on upbeat trade data from China.
- Annual core PPI in the U.S. remains steady at 2.3% in June.
- US Dollar Index stays calm near the 97 handle on Friday.
The AUD/USD pair climbed above the critical 0.70 mark earlier in the day as the upbeat data from China, which showed that the trade balance in June increased to $50.98 billion to beat the market expectation of $44.65 billion, helped the antipodeans gather strength against their major rivals. With the market action turning subdued amid a lack of significant fundamental drivers, the pair erased a portion of its daily gains and was last seen trading at 0.6988, adding 0.22% on the day.
Earlier in the session, the data published by the U.S. Bureau of Labor Statistics revealed that the core Producer Price Index, which excludes food and energy prices, came in at 2.3% on a yearly basis in June to surpass the market expectation of 2.2%. Nevertheless, the market largely ignored this data and the US Dollar Index was last seen a little above the 97 mark, where it was virtually unchanged on a daily basis.
Meanwhile, White House trade adviser Navarro told CNBC that they were in a "quiet period" in trade negotiations with China, hinting at the lack of progress in talks and made it difficult for the AUD to preserve its strength.
Later in the day, there won't be any other macroeconomic data releases from the U.S. but Chicago Fed President Charles Evans will be delivering a speech. However, the pair is unlikely to make a strong move in either direction.
Technical levels to watch for
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