AUD/USD drops below 0.7750 as market mood sours
- AUD/USD continues to push lower ahead of American session.
- US Dollar Index pares early losses, stays flat near 90.30.
- Wall Street's main indexes look to open in the negative territory.
The AUD/USD pair edged lower during the Asian session and extended its slide during the European trading hours. As of writing, the pair was down 0.37% on the day at 0.7743.
USD finds demand as investors stay cautious
Earlier in the day, the data from China revealed that Retail Sales in April rose by 17.7% on a yearly basis. This reading missed the market expectation for an increase of 24.9% by a wide margin and weighed on the China-sensitive AUD.
In the meantime, the risk-averse market environment is putting additional weight on the AUD's shoulders. Reflecting the sour mood, major European equity indexes are losing between 0.3% and 0.6%. Furthermore, the S&P 500 Futures are down 0.42%, suggesting that US stocks will be on the back foot after the opening bell.
On the other hand, safe-haven flows are helping the greenback stay resilient against its rivals. At the moment, the US Dollar Index, which fell to a daily low of 90.17, is unchanged at 90.30.
Later in the session, the Federal Reserve Bank of New York's Empire State Manufacturing Index will be looked upon for fresh impetus. On Tuesday, the Reserve Bank of Australia (RBA) will release the minutes of its May meeting.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
