- AUD / USD retreats from a high of 0.69984 over five months despite optimistic Australian data.
- US President Trump refrained from negative comments in early Asia.
- The risk tone of the market seems to consolidate the strength of the day before the ECB, US Jobless Claims.
Despite optimistic data on Australia, the AUD / USD fell to 0.6889, down 0.31% on a day, Thursday morning. The reason can be attributed to the decline of the US dollar from the multi-day high as well as the consolidation of market risks before key events.
Australia’s April retail sales fell from -17.9% to -17.7%, while the trade balance exceeded the forecast 7,500 million to reach 8,800 million.
Given the preliminary readings of retail sales already out loud, the markets showed a small reaction to the data.
The compression of the pair’s momentum could also be the lack of major catalysts before the European Central Bank (ECB) monetary policy meeting and unemployment claims in the United States.
As a result, trade sentiment loses the bullish momentum of the previous day. The news that the United States is placing additional restrictions on the Chinese media could also affect the trading climate.
On the contrary, U.S. President Donald Trump refrained from making any major negative comments during his early morning interview with Newsmax. The Republican leader has shown himself ready not to use other soldiers to tame the protests at home while withdrawing from any sanctions against Chinese President Xi Jinping, regarding the question of Hong Kong.
While depicting mood, yields on 10-year US Treasuries decline 1.7 basis points (bp) to 0.74%, but equities in Asia Pacific remain slightly positive in hopes of a new revival of Europe.
In addition to calendar data / events, traders can also keep an eye on US-Chinese tension and signs of further economic upsets to forecast Australian moves in the near term.
Not only is the round figure of 0.7000, but the December 2019 peak around 0.7045 also adds to the upward barriers for the pair. As a result, sellers can further insist on the RSI overbought conditions to revise the lows of early January near 6850.