AUD/USD clings to 2-week bottom ahead of China data

  • Traders await data from the key customer to validate RBA’s rate cut fears.
  • Souring US relations with China and Iran also questions trade sentiment.

Having witnessed another day of losses piled due to heightened expectations of the RBA’s rate cut, the AUD/USD pair shows little moves near 0.6920 as investors await China data during the early Asian session on Friday.

The Reserve Bank of Australia’s (RBA) increased emphasis on the unemployment rate triggered fears of another rate cut by the Aussie central bank after the job data rose more than expected 5.1% to 5.2% during May.

Bears also gave due importance to the US-China trade stalemate while heavy risk tone due to rising concerns of a Fed rate cut and political tension between the US and Iran also weighed on the prices.

The global barometer of risk sentiment is the US 10-year treasury yield that slipped more than three basis points (bps) to 2.093% by the time of writing.

China’s May month retail sales and industrial production are next in the pipeline for Aussie traders to watch. Recent data from the dragon nation have been upbeat but could do little to boost the Antipodeans. However, a likely increase in retail sales to 8.1% from 7.2% coupled with a rise in industrial production growth to 5.5% from 5.4% on a yearly basis might not refrain from pleasing the traders. On the contrary, disappointment from the data dump is likely to cause more losses than otherwise due to prevailing pessimism.

Technical Analysis

The quote is nearing the late-March bottoms around 0.6900, a break of which opens the door for its further south-run to 0.6860 and then to 2016 low near 0.6830.

In a case where prices take a U-turn, 0.6940, 0.6960 and 50-day simple moving average around 0.7010 could challenge the pullback.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.


GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.


USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more