- AUD/USD pulls back from a five-week high.
- US President Donald Trump remains hopeful to restart the economy sooner than earlier.
- US data, pandemic updates can offer intermediate clues ahead of Thursday’s Aussie employment data.
AUD/USD bears the burden of the latest risk-reset, downbeat Aussie consumer confidence data while stepping back from a multi-day top to 0.6430 during the Asian session on Wednesday. The pair earlier cheered the US dollar strength as well as risk-on trade sentiment.
Westpac Consumer Confidence plunged to the lowest since 1191, to 75.6 in April versus 91.9 prior. The consumer sentiment gauge also registered the steepest declines in history while marking -17.7% drop compared to -3.8% previous readout.
Other than the downbeat Aussie data, the resurgence of the virus in China, Australia’s largest customer, might have also contributed to the pair’s declines.
The risk catalysts flash mixed signals as the US 10-year Treasury yields and Japan’s NIKKEI are mildly weak whereas Australia’s ASX 200 register 0.30% gains by the press time.
US President Trump, in his Coronavirus Task Force Briefings, reiterated hopes to restart some of the states, which are closed to tame the pandemic. The Republican leader also anticipates the stock market to register record highs soon.
Moving on, the US economic docket is likely to entertain the traders with key Retail Sales, NY Empire State Manufacturing Index and Fed’s Beige Book whereas virus headlines could keep the driver’s seat. Though, major attention will be given to Thursday’s Aussie employment data for March that will signal the further need of stimulus to the economy.
Technical analysis
Sellers look for entry below 0.6375, comprising 50-day SMA, while targeting an ascending trend line since March 19, 2020, around 0.6220 now. Meanwhile, a downward sloping trend line since January 01, 2020, currently near 0.6500, is on the bulls’ radar.
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