AUD/USD picks up bids from weekly low amid sour sentiment, mixed Aussie data

Following its drop to the one-week low, AUD/USD recovers from 0.7579 to 0.7590 during Thursday’s Asian session. In doing so, the quote struggles to justify mixed data from Australia and confusing signals on risk catalysts but respects the latest optimism concerning the coronavirus (COVID-19) at home.

Australia’s Trade Balance eases from 9700M forecast to 7529M, versus 10142M prior, whereas Retail Sales shrank less than initial estimations of -1.1% to -0.8% in February. Further details suggest Imports rose beyond -2.0% prior to +5.0% and the Exports dropped from 6.0% to -1.0% for the reported period.

Additionally, the Aussie housing figures comprising Home Loans and Investment Lending for Homes eased in February versus early Asia’s upbeat release of AiG Performance of Mfg Index for March, 59.9 versus 58.8 prior.

It should be noted that the news suggesting no lockdown extension in Australia’s Brisbane and an absence of fresh covid cases in the New South Wales favored the AUD/USD bulls.

However, the market’s sluggish reaction to US President Joe Biden’s $2.25 trillion infrastructure spending plan, amid fears of rejection in the Senate, joins the US-China tussle to weigh on the risk. Also on the negative side were the mixed updates concerning the virus vaccines.

Amid these plays, S&P 500 Futures print 0.13% intraday gains while the US 10-year Treasury yields stay positive around 1.75%.

Moving on, China’s Caixin Manufacturing PMI, expected 51.3 versus 50.9 previous readouts, can offer immediate direction ahead of the US ISM Manufacturing PMI data. Though, major attention will be given to the risk news, mainly concerning the stimulus and virus.

Technical analysis

Multiple pullbacks from the 0.7700 immediate hurdle suggest AUD/USD bears’ determination to break the 0.7562-57 support-zone including lows marked since late December 2020.