- AUD/USD extends the drop amid US dollar’s rebound.
- Treasury yields drop on dovish Fed Powell, Biden’s plan unimpressive.
- US Retail Sales and Consumer Sentiment data eagerly awaited.
AUD/USD is on a steady decline after facing rejection at 0.7800 in the overnight trades. The aussie tests 0.7750 amid the risk-off market mood, which aids the rebound in the safe-haven US dollar.
The US dollar attempts a bounce ahead of the European open, recovering from the dovish take from the Fed Chairman Jerome Powell. Powell said in his speech Thursday that the time to raise interest rates is 'no time soon'.
The risk sentiment remains sour, as investors scrutinize President-elect Joe Biden’s $1.9 stimulus package proposal and weak US jobless claims, which has also helped put a bid under the greenback, weighing on the aussie.
However, the AUD bulls could find some support from the tumbling US Treasury yields, in light of a dovish monetary policy likely to be maintained by the Fed in the coming months.
Meanwhile, the US Retail Sales and Michigan Consumer Sentiment will offer fresh direction on the greenback, eventually influencing the aussie pair. Also, of note remains China’s Q4 GDP report due Monday at 0130 GMT.
AUD/USD technical levels
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