AUDUSD struggles to defend recent gains.
The AUDUSD maintains its intraday high above 0.6560, justifying. The lack of notable disappointment from the latest Australian. And Chinese statistics released early Thursday. However, amid a cautious mindset ahead of a flood of US data. The Aussie pair lacks a bullish bias.
Nonetheless, China’s Caixin Services PMI rose to 54.1 in July, up from 53.9 the previous month and 52.5 expected by the market.
Australia’s Q2 retail sales increase, while the trade surplus falls in June.
Earlier in the day, the Australian Bureau of Statistics (ABS) released preliminary readings. For the nation’s second quarter (Q2) Retail Sales. as well as foreign trade figures for June. The data point to a little improvement in Australian Q2 Retail Sales, to -0.5% QoQ from -0.6% previously, as well as a deterioration in the Trade Balance, which fell to 11,321M from 11,791M in previous readings and 11,000M predicted.
It’s worth mentioning that the US Dollar Index (DXY) shows minor losses near 102.50, as bulls take a breather after reaching three-week highs. The recent decline in the US dollar could be attributed to the currency’s inability to break through a downward-sloping resistance line that has been in place since May 31, at 102.75 at the latest, as well as the market’s preparations for top-tier US data.
Furthermore, the S&P500 Futures have made minor gains, while US 10-year Treasury bond yields have fallen from their highs. The pair’s highest level since November 2022 also allows it to lick its wounds at its lowest level in three weeks.
Talks of the RBA’s policy turn and a cautious mindset kept Aussie bears optimistic.
However, the bearish bias toward the Reserve Bank of Australia (RBA) gathers traction and joins the market’s cautious mindset to keep Aussie pair sellers hopeful.
Looking ahead, market consolidation may allow the Aussie pair to defend recent gains ahead of US ISM Services PMI, Factory Orders, Weekly Initial Jobless Claims, and quarterly Nonfarm Productivity and Unit Labor Costs reports.
Technical Outlook
Despite the recent corrective rally within the virtually oversold RSI (14), the AUDUSD bears retain control unless a daily closure above the 10-month-old rising support line, now immediate resistance near 0.6590, is observed. With Sellers are looking for the yearly low set in May, which is around 0.6460.
