- The AUD / USD extends the American end of session withdrawal by 0.6960.
- Mixed comments from US President Donald Trump probe the broad sense of risk.
- Australian trade balance, retail sales in the spotlight for immediate direction.
AUD / USD retreats from its five-month high of 0.6918 in the middle of Thursday’s initial Asian session. Although there has been no major change in the sentiment of market risk, comments by US President Donald Trump have recently entertained traders of the Australian pair.
Risk-one stays on the map…
President Donald Trump has reiterated his position not to use more military power to reduce riots in the United States. In addition, the Republican leader also said he had not thought of sanctions against Chinese President Xi Jinping in Hong Kong.
While the aforementioned comments add to market optimism and favor the S&P 500 Futures to recover early day losses, his comments on the World Trade Organization and social distancing make traders guess.
Despite this, commercial sentiment remains fairly positive in the hope of a continuation of the economic recovery and additional stimuli from the main central banks. Raising optimism could also be another favor of US President Trump for developers of the coronavirus (COVID-19) vaccines.
Australian trade balance, expected retail sales…
Given the lack of major evidence, the Australian pair remains virtually unchanged, despite the latest setback, Australian trade figures for April and retail sales figures are expected for immediate direction. Forecasts suggest that the trade balance will soften to 7,500 M from 10,602 M while seasonally adjusted MoM retail sales may confirm preliminary estimates of -17.9%.
In addition to Australian data, risk factors and the European Central Bank (ECB) monetary policy meeting, coupled with the US Weekly Jobless Claims, will also be important to watch.
While the RSI overbought favors the pair’s withdrawal movements at 0.6850, including the lows in early January, the further decline is less likely, which, if that happened, could recall the month’s peak. February near 0.6775. On the upside, a 0.7000 psychological magnet could continue to attract the bull head of the December 2019 peak around 0.7045.