AUD/USD rebounds above 0.6930 as USD weakens on latest trade headlines
- Pres. Trump is said to delay tariffs on European car imports.
- US Dollar Index returns to 97.50 area.
- Coming up: Australia labour market data.
After edging lower toward the 0.69 handle, the AUD/USD pair staged a modest rebound in the last hour and was last seen trading at 0.6935, still down 0.1% on a daily basis.
Citing sources familiar with talks, Bloomberg reported that U.S. President Trump was planning to announce a six-month delay to tariffs that were going to be imposed on European car imports to allow the risk-appetite to return to markets and weigh on the greenback, which has been taking advantage of the risk-off mood today. Following a daily advance to 97.70 earlier in the session, the US Dollar Index retreated to yesterday's closing level of 97.50.
Meanwhile, today's data from the U.S. revealed that retail sales declined by 0.2% in April and industrial production contracted by 0.5% with both figures coming in worse than market expectations.
In the early trading hours of the Asian session on Thursday, the Australian Bureau of Statistics will release the April jobs report. Previewing the data, “In the 7 May Policy Statement, the RBA made clear it is firmly focused on further progress in lowering the unemployment rate. We look for a small lift to 5.1%, nothing to a central bank, but combined with a fall in full-time employment could temporarily weigh on the AUD and give July OIS rate cut odds a boost,” TD Securities analysts said.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
