- AUD/USD fizzles corrective pullback from 0.7712, bears eye extension of Wednesday’s losses, the first in last four days.
- Biden follows Trump’s dislike for China, Beijing warned over confrontation.
- Aussie Consumer Inflation Expectations, Treasury’s economic remarks recalled buyers earlier.
- Off in China, Japan restrict market moves amid a light calendar, US data, stimulus news eyed.
AUD/USD fails to refresh intraday high despite multiple attacks to 0.7725-26 during early Thursday’s trading. In doing so, the Aussie pair respects the fresh tension surrounding US-China relations while also justifying the early-Asian comments from Australia’s Treasury Secretary and upbeat Consumer Inflation Expectations.
US President Joe Biden didn’t part ways from Donald Trump’s hard stand on Beijing during his first-ever telephonic conversation with Chinese counterpart Xi Jinping. Following Biden’s criticism of China’s economic practices, Reuters released the news that a senior US official hints at changes in trade policy with China.
In a reaction, China’s Jinping indirectly warned the US that the confrontations will be a disaster for both the countries while also underscoring concerns over Taiwan, Hong Kong and Xinjiang.
Earlier on Thursday, Australia’s Treasury Secretary Kennedy praised the Pacific major’s pace of economic recovery. The diplomat also said, “Looking forward to an increase in business investment this year and next.”
It should also be noted that the Australian Consumer Inflation Expectations for February grew more than 3.4% forecast and prior to 3.7%.
Although aforementioned catalysts should have moved the markets, holidays in Japan and China result in a dormant performance of S&P 500 Futures around 3,900.
Moving on, AUD/USD traders will seek details of US stimulus discussion, which has been helping risks off-late, to stay above 0.7700. Also important will be the US weekly jobless claims figures.
Read: US Initial Jobless Claims Preview: The trend’s the thing
Technical analysis
Having reversed from a downward sloping trend line from January 06, currently around 0.7755, AUD/USD sellers eye 21-day SMA level of 0.7693. However, bulls won’t accept defeat unless the quote refreshes monthly low.
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