- AUD/USD is expected to continue its three-day losing streak after falling below 0.6500.
- The USD index showed a marginal correction as the White House and Republican officials met virtually on Thursday.
- Australian retail sales grow 0.2%, down from the previous expansion of 0.4%.
The AUD/USD pair found an intermediate cushion near the 0.6500 round support at the start of the Asian session. The Australian the asset has been on a three-day losing streak and is expected to continue its decline after breaking below the support above. The cautious mood on the market sharply reduced the attractiveness of risk-perceived currencies.
The S&P500 staged a decent recovery on Friday as the Federal Reserve (Fed) is expected to pause its rate hike regime at its June monetary policy meeting. Gains in the basket of 500 US stocks were supported by a solid recovery in technology and financials supplies.
The American dollar The index (DXY) remained very solid on Thursday, resuming a two-month high of 104.31 in the absence of further developments on US debt ceiling issues. At the end of the New York session, the USD index showed a marginal correction after Reuters reported that the White House and Republican leaders met virtually on Thursday and were close to breaking up the two parties, leading to major spending cuts and raising the government’s debt ceiling by 31, 4 trillion dollars. .
Going forward, data on US durable goods orders (April) will be most important. Economic data eased 1.0% from a previously reported 3.2% expansion.
On the Australian dollar front, investors are watching every month Retail sales data (April). According to the consensus, household demand increased by 0.2%, down from the previous expansion of 0.4%. Falling retail demand would allow the Reserve Bank of Australia (RBA) to keep interest rates on hold rates still forward.
