AUD/USD extends gains toward 0.6450 ahead of the releases of US economic data

AUD/USD continues its winning streak for the second consecutive day, trading around 0.6440 during the Asian session on Tuesday. The US Dollar (USD) weakened due to the decline in US Treasury yields, coupled with the rise in stocks across the United States (US) and Europe.

Additionally, upbeat macroeconomic data from Australia released on Monday provided support for the AUD/USD pair. As said, the monthly Retail Sales s.a. improved to 0.5% in July, against the expected rise of 0.3% from the previous figure of 0.8% decline.

The US Dollar Index (DXY), which measures the performance of Greenback against the six other major currencies, extends its losses and trades around 103.90. The 10-year US Treasury yield declined to 4.18%, eroding the strength of the US Dollar (USD) as a sense of caution prevails. The market participants will now look at data releases from the US, including Jolts Job Openings, Housing Price Index and Consumer Confidence are due to be released later in the day.

The positive sentiment resulting from China's stimulus measures is providing support to the Australian Dollar (AUD) due to the close trading partnership between the two nations. The stability of China's economy has the potential to enhance Australian exports to the country, contributing to the strength of the Aussie pair. Beijing reduced the stamp duty on stock trading by 0.1%. Moreover, the AUD/USD traders are also observing the trip of US Commerce Secretary Gina Raimondo to China, aimed at enhancing trade ties between the United States and China.

Investors are expected to closely monitor upcoming economic data releases, including the US Core Personal Consumption Expenditures (PCE) Index, weekly Jobless Claims, and Nonfarm Payrolls throughout the week. Likewise, Australia's Monthly Consumer Price Index will also be of significance. These data releases are anticipated to provide valuable perspectives on the economic trajectories of both nations, potentially impacting trading choices related to the AUD/USD pair.