AUD/USD finds a cushion around 0.6500 ahead of Australian Retail Sales and US Durables
- AUD/USD is expected to continue its three-day losing streak after dropping below 0.6500.
- The USD index showed a marginal correction as the White House and Republican leaders met virtually on Thursday.
- Australian Retail Sales are seen expanding by 0.2%, lower than the prior expansion of 0.4%.
The AUD/USD pair has found an intermediate cushion near the round-level support of 0.6500 in the early Asian session. The Aussie asset has registered a three-day losing streak and is expected to continue the downside spell after dropping below the aforementioned support. A cautious market mood has trimmed the appeal for risk-perceived currencies sharply.
S&P500 delivered a decent recovery on Friday as the Federal Reserve (Fed) is expected to pause its rate-hiking regime in June’s monetary policy meeting. Gains in the 500-US stocks basket were supported by a solid recovery in technology and financial stocks.
The US Dollar Index (DXY) remained super solid on Thursday and refreshed a two-month high at 104.31 amid an absence of further development in US debt-ceiling issues. In the late New York session, the USD index showed a marginal correction after Reuters reported that the White House and Republican leaders met virtually on Thursday and are near cracking bipartisan, which inculcates large spending cuts and a raise of the government’s $31.4 trillion debt-ceiling.
Going forward, the United States Durable Goods Orders (April) data will be of utmost importance. The economic data is seen contracting by 1.0% against an expansion of 3.2% reported earlier.
On the Australian Dollar front, investors are keeping an eye on monthly Retail Sales data (April). As per the consensus, households’ demand is seen expanding by 0.2%, lower than the prior expansion of 0.4%. Declining retail demand would allow the Reserve Bank of Australia (RBA) to keep interest rates steady ahead.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
