- AUD / USD posts a four-day loss streak after Australia’s April job report.
- The US dollar is struggling in a mixed climate over negative Fed rates.
- American-Chinese tensions, the risk of resurgence of the virus are exerting downward pressure on the pair.
- US data, trade / virus updates will be the key to a new impetus.
AUD / USD drops to 0.6435 after first peak at 0.6470 because Aussie Employment figures on Thursday sent mixed signals. The pair also carries the burden of the sense of risk.
The unemployment rate for April in Australia brings the forecast from 8.3% to 6.2%, while the change in employment came smaller than the forecast from -575K to -594.3K.
The People’s Bank of China (PBOC) ‘s lower rate forecasts should also have limited the decline in the pair. Bloomberg reported that the PBOC will announce a further cut in its Medium Term Loan Facility (MLF) rates for liquidity challenges.
Despite this, the US-China trade / political tension, as well as the risk of the 2.0 virus wave, appear to be putting downward pressure on the pair.
As a result, yields on 10-year US Treasuries remain under pressure below 0.65%, with Asian stocks posting slight losses at press time.
Continuing, Australian traders will keep their eyes on the Chinese-American headlines and viruses for fresh impetus ahead of the weekly jobless claims figures in the United States. The employment gauge should drop from 3169K to 2500K during the week ended May 08.
The 100-day SMA, near 0.6525 now, followed by the monthly high close to 0.6560 / 65, keeps the short-term rise in the pair capped. On the contrary, the confluence of a three-week ascending trend line and a 21-day SMA around 0.6420 / 25 keeps the short-term declines limited, a break of which can cause the quote to be lower. the previous week around 0.6370.