- AUD/USD refreshes intraday low, drops for consecutive second day.
- Australia’s preliminary Retail Sales dropped 1.1% in February.
- Market sentiment consolidates ahead of BOJ, US-China jitters probe the optimists.
- Treasury yields step back from 14-month top, S&P 500 Futures print mild gains.
AUD/USD stands on a slippery ground while refreshing the intraday low with 0.7740, down 0.23% on a day, after Aussie data disappointed traders during early Friday. Not only the preliminary readings of Australia’s Retail Sales for February but the US-China tussles and reflation fears also weigh on the quote even as the US Treasury yields ease from the multi-month top.
The first reading of Australia’s Retail Sales dropped way below 0.5% prior and 0.4% market consensus to -1.1% MoM during the latest announcement.
The data adds to the AUD/USD weakness amid geopolitical fears emanating from China and North Korea.
Not only the tough stand against Beijing and North by US Secretary of State Antony Blinken and Defence Secretary Lloyd Austin but squabbles in Alaska meeting between the American and Chinese diplomats also highlight old geopolitical fears. Elsewhere, Iran is also alleged to secretary piling nuclear arms and worrying global markets.
It should, however, be noted that the European Medicine Authority (EMA) and US President Joe Biden have recently been successful in renewing vaccine optimism ahead of the comments from the World Health Organization (WHO).
Amid these plays, S&P 500 Futures part ways from Wall Street benchmarks while flashing 0.24% intraday gains whereas the US 10-year Treasury yield drops 1.5 basis points to 1.714%. It’s worth mentioning that the US bond coupon for 10-years jumped to the highest since January the previous day as markets shrugged off Fed’s efforts to tame bond bears.
Looking forward, a lack of major data/events, except for the BOJ meeting, in Asia keeps risk catalysts in the driver’s seat.
Technical analysis
Failures to provide a daily closing beyond January’s top around 0.7820 keep AUD/USD sellers hopeful to break an eight-day-old support line near 0.7722.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.