- Retail Sales in Australia rose sharply in March.
- Market sentiment improves on Wednesday with major European stocks posting gains.
- Coming up: Housing Price Index from US and Commonwealth Bank PMI from Australia.
The AUD/USD pair gained traction during the Asian trading hours and broke above the 0.6300 handle to touch a fresh daily high of 0.6351. However, with the trading action turning subdued during the European session, the pair has gone into a consolidation phase and was last seen trading at 0.6333, where it was up 0.85% on a daily basis.
The data from Australia on Wednesday revealed that Retail Sales in March rose by 8.2% (preliminary) following February’s growth of 0.5%. On a negative note, the Westpac Leading Index slumped to -0.84% in March from -0.42%.
USD loses strength on Wednesday
In the meantime, after suffering heavy losses on Monday and Tuesday amid oil collapse, major global equity indexes seem to be staging a rebound on Wednesday to reflect an improving risk sentiment. As of writing, the Euro Stoxx 50 and Germany’s DAX 30 indexes were both up 0.75% on the day.
The upbeat market mood is making it tough for the greenback to find demand and helping the pair cling to its gains. Ahead of Housing Price Index data from the US, the US Dollar Index is losing 0.2% on the day near the 100 handle.
During the Asian session on Thursday, the Commonwealth Bank’s Services and Manufacturing PMI data from Australia will be looked upon for fresh catalysts.
Technical levels to watch for
Share
