- Challenges to the US-China trade deal and the USD strength negatively affect antipodeans.
- The domestic service activity gauge and housing data are in the focus ahead of the US jobs report.
Question marks on the US-China trade deal and sluggish economics at home hold the AUD/USD tightly around 0.7000 ahead of domestic data up for release on early Friday.
The Aussie pair couldn’t withstand China’s holidays and mixed signs of the much-awaited trade deal between the world’s two largest economies.
Adding to the sellers’ strength was the US Dollar (USD) increase backed by upbeat fundamentals and expecting strong job numbers from today’s monthly report.
Traders gave little importance to the risk-tone barometer, 10-year US Treasury yield, as it grew nearly three basis points to 2.55%.
Looking forward, Australia’s AiG performance of service index (April) and building permits for March will be up next in the focus followed by the US employment data.
The Aussie service activity gauge has been in the contraction region for last three-months with 44.8 being the latest release. Further, building permits could register a drop of -14.0% versus +19.1% prior.
On the other hand, the US employment data is likely to register a small downtick in the headline NFP that should be compensated by the likely improvement in average hourly earnings. However, no change in expected in the unemployment rate.
Technical Analysis
Having successfully closed beneath four-month-old ascending trend-line, the Aussie pair is likely to revisit 0.6980 and 0.6910 rest-points unless recovering back beyond 0.7010, which in-turn could recall 0.7030, 0.7055 and 0.7070 consecutive numbers to the north.
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