AUD/USD drops to fresh daily lows below 0.6440
- AUD/USD struggles to stage a decisive rebound on Friday.
- Heightened US-China tensions weigh on the market sentiment.
- US Dollar Index stays above 100 ahead of key macroeconomic data releases.
The AUD/USD struggled to find direction during the Asian session on Friday following mixed macroeconomic data releases from China. However, the souring market sentiment during the European trading hours caused the pair to come under renewed bearish pressure. As of writing, AUD/USD was down 0.38% on the day at 0.6437.
Earlier today, the National Bureau of Statistics of China reported that Industrial Production in April expanded by 3.9% following March's contraction of 1.1%. On the other hand, Retail Sales fell by 7.5% in the same period to miss the market expectation for a decline of 7%.
Markets turn risk-averse
Meanwhile, the US Commerce Department in a statement said the US has decided to bar Huawei from acquiring semiconductors, chipsets made using US software and technology. This development caused the S&P 500 futures, which was last down 0.85% on the day, fall sharply.
In the early hours of the American session, the US Census Bureau will release April Retail Sales data. The US economic docket will also feature Industrial Production data and the University of Michigan's Consumer Sentiment Survey.
Reuters on Friday reported that a recently conducted poll pointed out to a sharp decline in Retail Sales. "Retail Sales probably collapsed 12.0% last month, which would be the second-biggest decline since the government started tracking the series in 1992. Retail sales plunged 8.7% in March," Reuters wrote.
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.
