AUD/USD seesaws around intraday top above 0.7050 after upbeat Aussie Retail Sales
|- AUD/USD snaps four-day losing streak while bouncing off one-month low.
- Australia’s Retail Sales shrank 1.5% MoM in September.
- Market’s risk-tone remains positive as US policymakers inch closer to the stimulus.
- COVID-19 woes, no-deal Brexit worries and RBA’s pessimism probe the bulls.
AUD/USD takes rounds to 0.7060/55 during Wednesday’s Asian session. In doing so, the quote pays a little heed to the recently flashed Retail Sales data from Australia. Though, the data backs the broadly risk-on mood that takes clues from the progress of the US coronavirus (COVID-19) stimulus talks.
The preliminary readings of the Australian Retail Sales suggest that the consumer activities recovered, despite a drop of 1.5% versus -4.4% prior, during the previous month. Earlier in the day, Australia’s Westpac Leading Index eased from 0.48% to 0.22% MoM in September.
Read: Australia Retail Sales (Sep. Preliminary): Falls 1.5% MoM, AUD steady
Talking about the risks, US House Speaker Nancy Pelosi’s comments conveying more clarity in the aid package discussions recently favored the trading sentiment. However, bulls are cautious ahead of US Treasury Secretary’s return from the Middle East as the policymakers have already missed Tuesday’s deadline and Senate Majority Leader Mitch McConnell defy US President Donald Trump’s push for the stimulus before the election.
Other than the US relief package talks, the tightening grips of the COVID-19 in Europe join the Sino-American and Aussie-China tussle to challenge the optimists.
Amid these plays, S&P 500 Futures and stocks in Asia-Pacific remain mildly bid during the early hours of trading. The US 10-year Treasury yields also pierce the 0.80% mark and flash the upbeat market mood.
As a result, today’s aid package negotiations between Pelosi and Mnuchin will be the key for the global markets and the AUD/USD even as the economic calendar fails to offer any important data from either the US or Australia.
Technical analysis
The bears need to conquer an ascending trend line from mid-June on a daily closing basis, currently around 0.7045, to visit the previous month’s bottom surrounding the 0.7000 threshold. Until then, the 100-day SMA level of 0.7101 holds the key for the bulls’ entries.
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