AUD/USD regains traction to 0.7800 on upbeat Australian trade numbers, ignores soft Retail Sales


  • AUD/USD picks up bids from the intraday low on strong trade data.
  • Australian Retail Sales eases from 0.6%, Trade Balance crosses market consensus and prior.
  • Market sentiment stays heavy as US Treasury yields extend Wednesday’s run-up, US issues warning over Microsoft email server hack.
  • Fed’s Powell, second-tier job data will be the key together with the risk catalysts.

AUD/USD rises to 0.7775 in a fresh rebound from intraday low after Aussie data release on early Thursday. The quote extends bounce off 0.7752 following the upbeat trade figures for January while also paying a little heed to the soft Retail Sales figure for the stated month.

Australia’s Retail Sales eased below 0.6% initial estimates to 0.5% MoM. However, the pair buyers followed upbeat Trade Balance, 10,142M versus 6,500M expected and 6,785 prior, to trim the early Asian losses.

Read: Mixed Aussie dada fails to make shakes in AUD/USD

Even so, a sober mood in the market keeps the buyers chained ahead of the key data/events of this week.

Market sentiment remains heavy as reflation fears again jumped on the table after the ECB policymakers ruled out a serious need to tame bond bears. Also backing the mood could be the UK’s budget and progress on the US stimulus, suggesting further money inflow and challenges for easy money policy.

Elsewhere, the US issues an emergency warning after China-linked hackers roiled Microsoft’s email servers. Further, an in the US House on Thursday, due to rumored plan of another Capitol Hill attack, also heavy the risk.

Amid these plays, US 10-year Treasury yields rose 1.3 basis points to 1.483% whereas stocks in Australia are down 0.77% with the S&P 500 Futures currently declining 0.17%.

Moving on, weekly Jobless Claims and Q4 details for Nonfarm Productivity and Unit Labor Cost will be the key data but nothing more important than Fed Chair Jerome Powell’s speech, at 17:05 GMT. Should the Fed leader cites reflation fears, the bond bears will have an extra boost to defy the market sentiment.

Also important will be the updates on the US stimulus and coronavirus (COVID-19) conditions as well as China’s hints for further monetary policy, which has been easy off-late.

Technical analysis

Unless providing a decisive break below an ascending trend line from early November, at 0.7740 now, AUD/USD sellers should remain cautious. Meanwhile, 10-day SMA near 0.7840 guards immediate upside.

Additional important levels

Overview
Today last price 0.7766
Today Daily Change -17 pips
Today Daily Change % -0.22%
Today daily open 0.7783
 
Trends
Daily SMA20 0.7781
Daily SMA50 0.7729
Daily SMA100 0.7519
Daily SMA200 0.7304
 
Levels
Previous Daily High 0.7838
Previous Daily Low 0.777
Previous Weekly High 0.8008
Previous Weekly Low 0.7692
Previous Monthly High 0.8008
Previous Monthly Low 0.7562
Daily Fibonacci 38.2% 0.7796
Daily Fibonacci 61.8% 0.7812
Daily Pivot Point S1 0.7757
Daily Pivot Point S2 0.773
Daily Pivot Point S3 0.7689
Daily Pivot Point R1 0.7824
Daily Pivot Point R2 0.7865
Daily Pivot Point R3 0.7892

 

 

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retains weekly gains trades above 1.2000

EUR/USD peaked at 1.2079, now stable in the 1.2030 region. The shared currency holds on to recent gains despite renewed demand for its American rival.

EUR/USD News

GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 

GBP/USD News

XAU/USD clings to modest gains around $1,780 despite USD strength

The XAU/USD gained traction in the early American session and climbed to a daily high of $1,780. Although the greenback started to gather strength in the second half of the day, the pair stayed relatively resilient and was last seen rising 0.35% on the day at $1,778.

Gold News

WeWork and Venmo join the Bitcoin craze while prices consolidate

The announcement by WeWork that it will begin accepting payments in select cryptocurrencies, including Bitcoin, Ethereum, USD Coin, Paxos, and several others, is another sign of adoption and follows the decision by Tesla to do the same

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

The Bank of Canada is widely expected to keep its policy rate unchanged at 0.25% on Wednesday. However, the improving economic outlook and recent remarks from officials suggest that the BoC could become the first major central bank to lay out a roadmap out of the ultra-loose policy.

Read more

Forex MAJORS

Cryptocurrencies

Signatures