AUD/USD climbs above 0.7500 on softer DXY and upbeat Aussie Retail Sales
- AUD/USD has settled above 0.7500 as progress on the Moscow-Kyiv peace talks underpins risk-on impulse.
- The upbeat market sentiment has improved the demand for risk-sensitive assets.
- Strong Australian Retail Sales have underpinned the antipodean against the greenback.
The AUD/USD pair is breaching its previous balanced profile in which the auctioning was placed in a narrow range of 0.7466-0.7519 on the upside. The pair has displayed a firmer rally after hitting a low of 0.7165 on March 15.
The constructive step towards a ceasefire by the Kremlin and Kyiv has set a positive tone for the market. Risk-on impulse is gaining more traction and eventually, the risk-perceived assets are scaling higher. Russian leader Vladimir Putin has withdrawn some of its troops from the Ukrainian land against an adaptation of neutral status by Ukraine. The former has cut off its military activity in northern Ukraine and Kyiv while Ukraine has promised to abstain from alliances. The roadmap toward a truce between Russia and Ukraine has cheered the market sentiment.
Apart from that, the aussie has been underpinned against the mighty greenback on upbeat Australian Retail Sales, which were reported on Tuesday. The Australian Bureau of Statistics reported monthly Retail Sales at 1.8%, much higher than the preliminary estimate of 1% but in line with the previous figure of 1.8%.
Meanwhile, a dead cat bounce in the US dollar index (DXY) has pushed it towards 98.40 but is likely to lose grounds soon and will find initiative selling further. The odds of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed) are stabled amid the decent performance of US JOLTS Job Openings data. The JOLTS Job Opening was recorded at 11.266M, slightly higher than a month earlier figure of 11.263M but modestly higher than the estimate of 11M.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
