AUD/USD wavers around 0.7850, ignores mixed Aussie data amid market optimism
- AUD/USD trims intraday gains amid US dollar consolidation, Aussie data.
- Australia Retail Sales eased to 1.3% for March, NAB data for April came in stronger.
- Market sentiment remains in favor of bulls cheering no Fed tapering, vaccine updates add to the risk-on mood.
AUD/USD wobbles around a 10-week high, recently up 0.08% near 0.7850, during early Monday. The pair struggles to extend Friday’s heavy run-up as Australia Retail Sales eased in March. In doing so, the quote pays a little heed to the National Australia Bank’s (NAB) upbeat sentiment figures as well as mildly bid market sentiment.
The final reading of March’s Aussie Retail Sales stepped back from 1.4% initial forecast and prior. Further, NAB Business Confidence jumps to 26 from 15 whereas NAB Business Conditions rise from 25 to 32.
Read: Aussie Retail Sales: March Final 1.3% vs est 1.4%; prev 1.4%
It should be noted that the news suggesting sooner availability of the Pfizer-BioNTech vaccine in the New South Wales as well as the European Union’s (EU) vaccine deal back the risk-on mood and battle bears. Also on the positive side could be Iran’s absence of flashing fire-words while talking about the nuclear deal with the US.
Alternatively, Brexit jitters and the coronavirus (COVID-19) worries in India, as well as Japan joins the US government’s declaration of emergency over cyberattack on the oil pipeline to test the market sentiment.
Above all, traders are happy after Friday’s strong jobs report that rejected the tapering fears and propelled equities and commodities, not to forget Antipodeans.
Amid these plays, S&P 500 Futures and the US 10-year Treasury yields are mildly bid but the US dollar index (DXY) refrains from declining further below late February lows, marked the previous day.
Moving on, a light calendar keeps AUD/USD traders directed towards the macro news for fresh impulse.
Technical analysis
A daily closing below 0.7820, comprising multiple tops marked since early January, should recall intraday sellers but bears may remain cautious until the pair stays above 0.7710-15 region, including 100-day and 50-day SMA. Alternatively, a sustained trading above the previous hurdle near 0.7820 enables AUD/USD bulls to aim for the 0.8000 psychological magnet. However, the 0.7880 and the 0.7900 resistances levels may test the upside momentum.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
