The Aussie pair takes the bids to approach the weekly top surrounding 0.7130 during Friday’s Asian session. In doing so, the AUDUSD pair fails to justify the Retail Sales data that matched market forecasts. The reason could be linked to the fresh monthly low o the US Dollar Index (DXY).
Australia’s preliminary readings of seasonally adjusted Retail Sales for April match the 0.9% market consensus, versus 1.6% prior.
Important, however, that the bitter sentiment challenges the AUDUSD buyers due to the pair’s risk-barometer status. Among the negatives are the latest news from Bloomberg saying, “US plans economic talks with Taiwan in latest challenge to China.” On the same line are the fears of global economic slowdown, mainly due to covid-led lockdown in China and the Russia-Ukraine crisis.
Looking forward, the US Dollar Index weakness and mixed catalysts may test the AUDUSD moves ahead of the US Core Personal Consumption Expenditure (PCE) Price Index for April, expected at 4.9% YoY versus 5.2% prior.
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