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Forex News

AUD/USD clings to modest gains above 0.6400 with eyes on Aussie Retail Sales

  • AUD/USD keeps the week-start recovery intact.
  • Expectations of US economy re-open, absence of US-China tussle portray mild risk-on sentiment.
  • Aussie Retail Sales, virus updates and trade news will remain as the regular catalysts.

AUD/USD carries the previous day’s modest strength while taking rounds to 0.6440 amid the initial Asian session on Wednesday. Upbeat comments favoring the gradual restart of the US economy seem to have favored the risk-on sentiment while the absence of statements showing further US-China tension seems to have helped the Aussie traders.

The US re-open in focus…

In addition to the early-week comments from California and New York, the latest update from US President Donald Trump also propels the hope that the world’s largest economy will be back on the track soon.

US President Trump recently said, “the White House coronavirus task force would wind down as the country moves into a second phase of dealing with the aftermath of the outbreak.”

It should also be noted that the Reserve Bank of Australia’s (RBA) downbeat economic assessment on Tuesday failed to defy the Aussie buyers amid no rate change, as expected.

Furthermore, the absence of the harsh statements showing the US-China tussle, as well as downbeat performance of the US activity numbers, also has contributed to the pair’s upside momentum.

Traders are looking for March month Aussie Retail Sales, expected to remain unchanged at 8.2%, for fresh impulse. Any upside surprises due to the likely increase in purchase while anticipating a lockdown can’t be ruled out. If so happens, the AUD/USD prices can well extend its three-day winning streak further towards 0.6500 mark. Other than the data, trade/virus update will also be the key for near-term direction.

Technical analysis

Only a daily closing below 21-day SMA level of 0.6390 can recall the bears targeting the late-April low surrounding 0.6250. However, 0.6490 and 100-day SMA near 0.6550 can keep the pair’s further recovery in check.

 

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