- A combination of factors assisted AUD/USD to regains some traction on Wednesday.
- Upbeat Aussie retail sales data, positive mood around equities remained supportive.
- Sustained USD buying, a US-China spat might cap gains ahead of the US ADP report.
The AUD/USD pair edged higher through the Asian session and climbed to fresh daily tops, around mid-0.6400s in the last hour.
Following the previous day’s intraday pullback, the pair managed to regain some positive traction on Wednesday and was supported by an upward revision of the Aussie monthly retail sales figures for March.
This comes on the back of a positive mood around the US equity futures and the latest optimism over the re-opening of economies, which extended some additional support to perceived riskier currencies, including the Australian dollar.
On the other hand, the US dollar remained well supported by its status as the global reserve currency amid a US-China spat over the origin of the coronavirus. This, in turn, might keep a lid on any further gains for the major.
Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the overnight swing highs, before positioning for any further near-term appreciating move beyond the key 0.65 psychological mark.
Moving ahead, market participants now look forward to the US economic docket, highlighting the release of the ADP report on private-sector employment. The data might influence the USD price dynamics and produce some trading opportunities.
Technical levels to watch
Share
