- AUD/USD is stuck in a tight range as traders get set for domestic obs data.
- The sentiment toward the RBA is a longer-term weight.
AUD/USD is currently flat on the day after a choppy start throughout Asia and the European session, riding through a range of 0.7594 and 0.7635.
It’s a nervous start for the higher beta complex given the mixed sentiment between covid concerns and earnings on the equity block.
So far, the Aussie dollar, along with most high-yielders, has not been able to take great advantage of the soft USD momentum in recent sessions as low-yielders led the rebound.
Traders are looking to positive growth and trade data out of China to support the bullish run of late which goes some way to support the stabilising risk sentiment but the key focus will be on domestic data.
Australian jobs numbers for March will be watched closely this week to gauge the pace of the recovery in the nation.
Another set of good data will go a long way to support the currency that is otherwise at the mercy of rising US yields.
The Reserve Bank of Australia rate expectations, however, are stuck to the bottom for a while regardless of encouraging data as macroprudential measures continue to weigh in the near term.