The AUD/USD pair fails to continue the largest daily rally in a month after fading a bounce from an intraday low.
In May, Australia’s retail sales increased, while China’s Caixin Services PMI fell in June.
As the government eases bias in the AstraZeneca vaccine, Sydney, Queensland, and NSW see an increase in covid infections, whereas Victoria sees zero instances.
The US vacation will present a challenge to momentum traders, and risk catalysts will remain the most important factor.
The AUD/USD currency pair is currently trading at 0.7515, down 0.15 percent intraday. In doing so, the Aussie pair ignores the newest statistics from Australia and China in the face of gloomy market sentiment.
The Caixin Services PMI in China fell short of expectations in June, falling to 55.1 from 55.7. Earlier in the day, Australia’s Retail Sales for May above the early expectation of 0.1 percent, rising to 0.4 percent, while activity data from the Commonwealth Bank and the AiG Performance of Construction Index gave mixed indications for June.
Increased infections in Sydney, Queensland, and New South Wales (NSW) have surpassed no new covid cases in Victoria, putting Australia’s coronavirus (COVID-19) situation in jeopardy. The same has increased the number of new cases by 46 so far in July 05, compared to 22 the day before.
However, the Australian government’s recent shift in position on the AstraZeneca vaccination appears to be a positive motivator for Australians. However, the Australian Technical Advisory Group on Immunisation (ATAGI) recommended the AstraZeneca injections for persons over 60 over the weekend.” However, Prime Minister Scott Morrison stressed yesterday night that this does not “preclude” those under the age of 60 from receiving AstraZeneca “ABC News reported.
Aside from Australia’s concerns, market sentiment is weighed down by uncertainty about the US Federal Reserve’s next movements.
Although mixed US employment statistics on Friday revived hopes that the Fed would wait for further details before approving monetary policy changes, the reappraisal of the results keeps investors upbeat and weighs on the S&P 500 Futures, which were down 0.15 percent intraday by press time.
Moving on, a dearth of significant data/events may leave AUD/USD traders looking for new clues beneath the COVID-19 and monetary policy heads. Even though the Australian central bank isn’t likely to change its current monetary policy, Tuesday’s RBA meeting will be crucial for the currency.
Despite the lockdowns, the RBA is likely to reduce emergency stimulus.
On the four-hour chart, the AUD/USD confirms early Asia’s bearish Doji candlestick by easing below a convergence of the 50-SMA and a 13-day-old resistance line, implying further weakness towards the previous month’s low around 0.7480-75, not to mention the most recent yearly low around 0.7445, flashed on Friday./n
