AUDUSD fading rebounds off 12-day low.

AUDUSD falls from an intraday high, fading the first reaction to mixed Australian data amid a risk-off sentiment on Monday. As a result, the risk-barometer pair prints a three-day decline as sellers target the round figure of 0.6900 after updating the two-week low.

Australian statistics were mixed, with Retail Sales down less than anticipated and inflation indications strengthening.

Earlier in the day, Australia’s fourth quarter (Q4) Retail Sales fell 0.2% QoQ, compared to -0.6% predicted and a 0.2% gain the previous quarter. Furthermore, TD Securities Inflation for the country increased to 0.9% MoM from 0.2% previously, as well as to 6.4% YoY from 5.9% previously. Concerning the risk, weekend stories claiming that a US military fighter jet knocked down a suspected Chinese spy balloon off the coast of South Carolina weighed on attitude, as US Secretary of State Antony Blink termed the incident serious.

US fired China’s balloon, calling it a spy, endangering once more relations between the two countries.

Following the occurrence, he cancelled his previously scheduled trip to Beijing. In a reaction to the occurrence, China President Xi Jinping called this as a ‘obvious overreaction’. Elsewhere, the dovish Fed measures failed to keep US Dollar bears optimistic in the aftermath of a good US employment report and activity statistics.

Nonetheless, the US Bureau of Labor Statistics (BLS) stunned markets by disclosing that Nonfarm Payrolls (NFP) increased by 517K in January, compared to 185K projected and 260K (upwardly revised) before. It’s worth mentioning that the unemployment rate fell to 3.4% from 3.5% the previous month and 3.6% projected, although average hourly earnings fell during the indicated month. Furthermore, the rebound in the US ISM Services PMI from 49.2 to 55.2, vs 50.4 predicted, supported the rebound in the US ISM Services PMI.

the United States Treasury bond yields and the US Dollar. Nonetheless, S&P 500 Futures extended the previous day’s drop from the greatest levels since August, falling 0.30% intraday near 4,140 at the time of publication. In the same vein, US 10-year Treasury note rates rose for the third day in a row, reaching 3.56% as of press time, marking the greatest weekly increase since late September 2022.

For AUDUSD Investors Risk triggers will be essential for taking quick action 

Looking forward, reports about China and fears about the Reserve Bank of Australia’s (RBA) next move may keep AUDUSD pair traders entertained ahead of Federal Reserve (Fed) Chairman Jerome Powel’s address on Tuesday. Following that, the duo will be closely watching Friday’s US UoM Consumer Sentiment Index for February, as well as the University of Michigan’s 5-year Consumer Inflation forecasts.

Traders should keep an eye on. It should be highlighted that market fears favor a hawkish action from the RBA in the face of strong inflation statistics, but a rate rise of less than 0.25% may soon push the AUDUSD pair down.