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  • AUD/USD extends the previous day’s losses from weekly top.
  • RBA failed to entertain markets but Treasury yields stole the show.
  • Risk-off heavies the quote ahead of final readings of key data.

AUD/USD holds lower ground around mid-0.7700s during the early Asian session on Thursday. The risk barometer recently refreshed intraday low as market sentiment stretched the previous day’s downbeat mood. Though, the bears are chained ahead of Aussie Retail Sales and trade data for January.

The escalating talks over the US covid stimulus and already announced UK budget rekindled reflation fears on Thursday. Also weighed on the mood could be chatters from the ECB suggesting no serious need to tame the bond bears.

Furthermore, House cancellation of a session on Thursday, following the news of a plot to shake Capitol Hill again, joined China-linked hackers’ cyberattack on Microsoft’s email server to exert a fresh burden on the risks.

Against this backdrop, the Wall Street benchmark closed in the red while the US 10-year Treasury yields rallied towards regaining the 1.50% mark. Further, the S&P 500 Futures drop 0.25% by the press time.

Moving on, Australia’s final prints of January month Retail Sales and Trade Balance, expected 0.6% MoM and 6500M, versus 0.6% and 6785M prior, should offer immediate direction to the AUD/USD prices. However, major attention should be given to the risk barometers as US fiscal relief news will be the key to watch ahead of today’s speech from Fed Chair Jerome Powell.

Technical analysis

The reversal from 10-day SMA, at 0.7835 now, directs AUD/USD towards breaking an ascending trend line from early November, at 0.7740 now.