- AUD / USD continues to push lower ahead of the US session.
- The US dollar index reduces initial losses, remains flat near 90.30.
- The major Wall Street indices appear to be opening in negative territory.
The pair AUD/USD it fell during the Asian session and extended its decline during European trading hours. At time of writing, the pair was down 0.37% on the day at 0.7743.
USD Finds Demand As Investors Stay Cautious
Hours earlier, data from China revealed that retail sales in April rose 17.7% annually. This reading disappointed market expectations of a 24.9% gain by a wide margin and weighed on the China-sensitive AUD.
Meanwhile, the risk averse market environment is putting additional weight on the AUD’s shoulders. Reflecting the bad mood, the main European stock indices are losing between 0.3% and 0.6%. Additionally, S&P 500 futures are down 0.42%, suggesting that US stocks will be on the defensive after the opening bell.
On the other hand, safe-haven flows are helping the dollar stay resilient against its rivals. For the time being, the US dollar index, which fell to a daily low of 90.17, remains unchanged at 90.30.
Later in the session, the Federal Reserve Bank of New York’s Empire State Manufacturing Index will be examined for fresh momentum. On Tuesday, the Reserve Bank of Australia (RBA) will release the minutes of its May meeting.
Technical levels
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