- AUD / USD is struggling to organize a decisive rebound on Friday.
- Increased tensions between the United States and China are weighing on market sentiment.
- The US dollar index remains above 100 before the publication of the main macroeconomic data.
AUD / USD struggled to find direction during Friday’s Asian session after the release of mixed macroeconomic data from China. However, the sentiment of the market soured during European trading hours caused the pair to fall further. At the time of writing, the AUD / USD was down 0.38% on the day to 0.6437.
Earlier in the day, the National Bureau of Statistics of China announced that industrial production rose 3.9% in April after contracting 1.1% in March. On the other hand, Retail sales down 7.5% over the same period to miss market expectations for a drop of 7%.
The markets reverse the risk
At the same time, the U.S. Department of Commerce said the U.S. has decided to prevent Huawei from acquiring semiconductors, chipsets made using U.S. software and technology. This development caused a sharp drop in futures on the S&P 500, which was down 0.85% on the day.
In the early hours of the US session, the US Census Bureau will release April retail sales data. The US economic file will also contain data on industrial production and the University of Michigan Consumer Sentiment Survey.
Reuters reported on Friday that a recent survey found a sharp drop in retail sales. “Retail sales likely plunged 12.0% last month, the second largest drop since the government started watching the series in 1992. Retail sales fell 8.7% in March, “writes Reuters.