- AUD/USD pays a little heed to Australia’s Retail Sales data for September and Q3.
- Global markets stay optimistic over Democratic victory in the US elections, fears sneak in ahead of Florida results.
- China’s Caixin Services PMI may offer intermediate moves.
AUD/USD steps back from the recently flashed three-week top of 0.7222 to 0.7183 amid Wednesday’s Asian session. In doing so, the pair fails to cheer the upbeat prints of
Australia’s seasonally adjusted Retail Sales for September recovers from the initial -1.5% estimate to -1.1%, versus -4.4% prior. The data fails to offer a major upside push to the risk barometer as traders turn cautious ahead of Florida election results. On the quarterly basis, the third quarter (Q3) figures grew past-6% forecast and -3.4% prior to +6.5% QoQ.
Recently published polls suggest Trump’s meager victory in Indiana while opponent Joe Biden is inching towards a narrow win in Florida. Further, Kentucky seems to favor the Democratic ruling in the early counting. Hence, hopes of a blue wave, a condition where Democrats dominate the US Congress, gain major support.
Stay tuned to: Four more years for Trump or a victory for Biden? – Live coverage
With the Democratic Party’s market favorite image, S&P 500 Futures and the US 10-year Treasury yields cheer the early polls. Stocks in Asia-Pacific also rise among the broad optimism while prices of gold stay firmer above $1,900, currently up 0.35% intraday to $1,912.70.
Looking forward, China’s October month Caixin Services PMI can follow the footprints of earlier activity numbers and surpass the 54.8 previous readouts. While the same can add strength to the AUD/USD prices, major attention will be given to the US election polls to strengthen hopes of a blue wave.
Technical analysis
A clear break of 50-day EMA and a two-month-old falling trend line, respectively around 0.7180 and 0.7140 now, directs AUD/USD bulls toward October month’s top near 0.7245.
Share
