AUDUSD is retreating from a one-month peak.
The AUDUSD pair extends the previous day’s late fall from 0.6455, or more than a one-month high. And remains under selling pressure during Friday’s Asian session. Spot prices are currently trading in the 0.6420-0.6415 range. Down more than 0.10% on the day. And appear to have broken a two-day winning streak.
Meanwhile, the decline could be temporary. Ascribed to a minor US Dollar (USD) rise. Amid some repositioning activity ahead of the much expected US monthly employment figures. Which are set to be released later in the early North American session. The widely publicized NFP data. Particularly wage growth figures, may affect market expectations on the Federal Reserve’s (Fed) future rate-hike course. This, in turn, will fuel USD demand and provide the AUDUSD pair a new directional impetus.
The decline lacks a fundamental catalyst and will most likely remain modest.
As we approach the big data risk, perceptions. That the Fed may be done hiking interest rates may hold any meaningful upside for the USD at bay. Aside from that, the current risk-on climate may deter traders from placing bullish bets around the safe-haven Greenback. Acting as a tailwind for the risk-averse Aussie. This, together with expectations for future interest rate hikes by the Reserve Bank of Australia (RBA). Bodes well for the appearance of some dip-buying around the AUDUSD pair.
Australian Retail Sales data provides little encouragement to the major.
Meanwhile, the Australian Bureau of Statistics (ABS) reported that Australia’s Retail Sales. A measure of the country’s consumer expenditure, gained 0.2% year on year in the third quarter, after falling 0.6% the previous quarter. Meanwhile, the data provides nothing to add any major impetus to the AUDUSD pair. The Caixin China Services PMI will be released next, which may help traders seize short-term chances, however the initial reaction is expected to be modest.
From a technical standpoint, the prior day’s sustained strength and closure above the 50-day moving averageFor the first time since July, the Simple Moving Average (SMA) provides credence to the bullish view. As a result, the path of least resistance for spot prices is to the upside. As a result, a test of the 100-day SMA, which is currently located just above the psychological level of 0.6500, appears to be a strong possibility. Nonetheless, the AUDUSD pair appears set to end in the green for the third week in a row.
