- AUD/USD sellers cheered the US data after dovish RBA minutes.
- Improvement in risk sentiment has little strength over the US-China trade tussle.
- Qualitative catalysts to dominate the market moves amid the lack of data on the economic calendar.
Like other Antipodeans, AUD/USD also remains on a back foot while taking the rounds to 0.7012 on early Wednesday morning in Asia.
Having witnessed initial declines on the back of the minutes from the Reserve Bank of Australia’s (RBA) latest monetary policy meeting, the Australian Dollar (AUD) had to bear the buyers’ shift towards the US Dollar (USD) amid upbeat Retail Sales data.
Pessimism surrounding the US-China trade deal also weighs on the Aussie pair as it includes Australia’s largest customer. Recently, the US President Donald Trump reiterated his hard stand against China by saying that there is a long way to go for a deal and the US could levy fresh tariffs.
With the US Retail Sales following the footsteps of early-week manufacturing gauge from the world’s largest economy, investors showed little reaction to the recently bearish Fedspeak. The US 10-year treasury yield recovers to 2.106% by the press time.
Looking forward, Australia’s June month Leading Index and the US Building Permits, Housing Starts for the same month are likely second-tier details on the economic calendar worth observing ahead of the key Australian jobs report up for publishing tomorrow. The Australian gauge dropped -0.08% in its previous reading whereas the US housing market indicators show mixed signals. The Building Permits (MoM) could rise to 1.300 million from upwardly revised 1.299 million but Housing Starts might soften to 1.261 million versus 1.269 previous readouts.
Pair’s dip beneath 100-day exponential moving average (EMA) highlights the importance of 0.6983/80 support confluence comprising 21 and 50-day EMAs, a break of which can fetch prices further down to current month low around 0.6910.
Meanwhile, 0.7045/50 and 0.7070 act as nearby resistances for the quote to clear ahead of pushing buyers in the direction to 0.7100 round-figure.