- The US-China tariff war remains in the spotlight.
- Australia and China data will also become important to observe.
AUD/USD is on the rounds near 0.6950 during the early Asian session on Wednesday. The pair recently recovered after statements from the US President signaled that the US-China tariff-war tensions might abate soon. However, traders await details of Australia’s wage growth, China’s retail sales and industrial for near-term direction.
Tweets from the US President Donald Trump like “Relationship with China's Xi is extraordinary” and “China wants a deal!” helped risk sentiment on Tuesday.
It should also be noted that the US Treasury Secretary will soon travel to China for further trade talks after the absence of positive outcome from the latest discussion at Washington activated fresh pessimism across the major markets.
China is Australia’s largest customer and hence any positive news for the world’s second-largest economy plays well for the Australian Dollar (AUD) as well.
Global barometer of risk sentiment, the US 10-year treasury yields, rose grew 2 basis points to 2.42% by the end of Tuesday.
Investors may now turn towards the economic calendar that carries first-quarter wage price index numbers from Australia and April month retail sales and industrial production from China.
As per the market consensus, Australia’s Q1 2019 wage price index may rise to 0.6% from 0.5% on a quarterly basis but can remain unchanged at 2.3% on the YoY format. On the other hand, China’s details might not please Aussie buyers as expectations suggest an 8.6% figure of retail sales growth against 8.7% prior and 6.5% industrial production growth versus 8.5% earlier.
Apart from the aforementioned details, the US retail sales from April will also entertain the traders. The retail sales growth is expected to soften to 0.2% from 1.6% MoM and retail sales ex-autos could clock in 0.7% from 1.2% prior. Additionally, the growth of retail sales control group might decline to 0.4% from 1.0%.
Technical Analysis
0.6900 and January 2016 lows near 0.6830 can keep flashing on the bear’s radar unless the pair manages to cross 0.7000 round-figure. Also, 0.6960/65 can act as immediate resistance for the prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.