- AUD/USD remains flat as upbeat Aussie data fails to inspire the AUD bulls.
- Australia's retail sales rose more than expected in February.
- Coronavirus numbers continue to rise and keep markets risk-averse.
The AUD/USD pair is lacking a clear directional bias on Friday, as the Aussie dollar is struggling to draw bids despite the above-forecast Aussie retail sales data.
Australia's Consumer spending, as represented by retail sales, rose by 0.5% in February, data released at 00:30 GMT showed. Retail sales were forecasted to have risen by 0.4% following January's 0.3% contraction.
The upbeat has so far failed to put a bid under the Aussie dollar, which isn't surprising, given the economy is known to have slowed down sharply in March due to the coronavirus outbreak. February data, therefore, is of little relevance now.
Also, the risk tone remains soft in Asia with the futures tied to the S&P 500 futures currently reporting a more than 0.5% drop. The coronavirus outbreak is showing no signs of slowing down. There are now more than 1 million cases of the virus globally, with more than 238,000 in the United States, according to CNN.
The last three weeks have marked one of the most devastating periods in history for the global economy. Investors are now worried that the global economy is headed for a prolonged period of depression.
These fears have been bolstered by the horrible weekly US employment data released on Thursday. A total of 6.6 million US workers filed for their first week of unemployment benefits in the week ending March 28, according to the Department of Labor. That is a new historic high.
The Aussie dollar and other risk assets are likely to remain under pressure on Friday. On the data front, the focus will be on China's Caixin PMI, virus headlines and the US economic calendar.
Technical levels
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
AUD/USD keeps the red below 0.6400 as Middle East war fears mount
AUD/USD is keeping heavy losses below 0.6400, as risk-aversion persists following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY recovers above 154.00 despite Israel-Iran escalation
USD/JPY is recovering ground above 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price pares gains below $2,400, geopolitical risks lend support
Gold price is paring gains to trade back below $2,400 early Friday, Iran's downplaying of Israel's attack has paused the Gold price rally but the upside remains supported amid mounting fears over a potential wider Middle East regional conflict.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.