- AUD/USD extends the late-US session pullback from 0.6960.
- Mixed comments from US President Donald Trump probes the broad risk-on sentiment.
- Aussie Trade Balance, Retail Sales in the spotlight for immediate direction.
AUD/USD recedes from five-month top to 0.6918 amid the initial Asian session on Thursday. While there hasn’t been a major change to the market’s risk-tone sentiment, US President Donald Trump’s comments recently entertained the Aussie pair traders.
Risk-one stays on the card…
US President Donald Trump reiterated his stand to not use further military power to compress riots in the US. Additionally, the Republican leader also mentioned that he has not thought about sanctions on China’s President Xi Jinping over Hong Kong.
While the aforementioned comments add to the market’s optimism and favored the S&P 500 Futures to recover the early-day losses, his comments on the World Trade Organization and social distancing keep the traders guessing.
Even so, trade sentiment remains fairly positive amid hopes of further economic recovery and additional stimulus from the major central banks. Also increasing the optimism could be US President Trump’s another favor for the coronavirus (COVID-19) vaccine developers.
Aussie Trade Balance, Retail Sales awaited…
Given the lack of major clues keep the Aussie pair mostly unchanged, despite the latest pullback, Australia’s April month trade numbers and Retail Sales figures are awaited for immediate direction. Forecasts suggest the Trade Balance soften to 7500M from 10602M whereas the seasonally adjusted MoM Retail Sales might confirm the preliminary estimates of -17.9% figures.
Other than the Aussie data, risk factors and monetary policy meeting by the European Central Bank (ECB), coupled with the US Weekly Jobless Claims, will also be important to watch.
Technical analysis
While overbought RSI favors the pair’s pullback moves to 0.6850, comprising the early-January lows, the pair’s further downside is less likely, which if happens could recall February month’s top near 0.6775. On the upside, 0.7000 psychological magnet could keep luring the bulls head of December 2019 peak surrounding 0.7045.
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