AUD/NZD eyes 1.0750 ahead of Aussie retail sales data, risk-on sentiment
- AUD/NZD is consolidating near 1.0770 in the Asian session.
- Risk-appetite improves on global growth optimism.
- Australian Retail sales eyed.
The prospect of a global economic recovery backed by the speedy vaccination program and reopening of the economy, albeit gradually across regions, improved the risk sentiment. The shift in sentiment favors the riskier asset at the expectation of higher return. This, in turn, lifts the demand for Kiwi.
At the time of writing, AUD/NZD is trading at 1.0784, down 0.02% on the day.
The selling interest around the aussie keeps AUD/NZD in the negative territory in the Asian session. The cross starts the session on a muted tone and fails to hold on to daily highs at 1.0786.
A bad show by the US NFP data on Friday, which came much lower than the market expectation of 1000k jobs, cemented the outlook of the continuation of the ultra-accommodative Federal Reserve. This is keeping investors glued to riskier assets in the anticipation of better investing opportunities.
Meanwhile, in a pre-budget speech, the New Zealand Finance Minister showed his faith in an economic recovery saying it's better than expected.
As for domestic data, the ANZ Business Outlook index rose to 9 points to 7 in May. Additionally, the Unemployment Rate decreased to 4.7% in Q1, beating market expectations of 4.9%.
Investors await the release of Australian Retails sales data and NAB’s Business Confidence data for April to gauge market sentiment. Furthermore. There is no important data in the New Zealand economic docket to be followed on Monday.
AUD/NZD Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
