AUD / USD hits a new weekly high around 0.7439 amid positive US economic data.

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  • AUD / USD extends its rally against the dollar for the seventh day in a row.
  • Market optimism weighs on the safe haven status of the US dollar.
  • The PBoC said Evergrande’s risks to the financial system are “controllable.”
  • Retail sales in the United States increased 0.7%, better than the expected contraction of 0.2%.

The AUD is advancing during the New York session, rising 0.12%, trading at 0.7425 at the time of writing. Market sentiment is bullish, represented by rising European and US stocks, while commodity currencies such as the AUD, CAD and NZD trim past losses against the dollar.

DXY Stops at 94.00 Following Better Than Expected US Data

The US dollar index that measures the performance of the dollar against its peers slides 0.11%, it is at 93.87, despite a rebound after three days of consecutive losses, in the performance of the US 10-year banknotes. UU., Which rises four and a half basis points, standing at 1,561%.

Meanwhile, the COVID-19 measures in Australia are beginning to soften. According to the authorities, the quarantine required for vaccinated travelers arriving in New South Wales would not be necessary from 1 November. The decision is made when the state of New South Wales will reach an 80% first vaccination dose rate on Saturday.

Nearby in China, the PBoC’s central bank finally spoke out about the Evergrande debt crisis, saying the risks to the financial system from developer struggles are “controllable” and unlikely to spread. In addition, the central bank has asked lenders to keep lending to the real estate sector “stable and orderly,” according to Zou Lan, head of the PBoC’s financial market department.

As for the data, the Australian economic agenda is empty. Regarding the US, Retail Sales for September rose a surprising 0.7%, higher than the 0.2% contraction estimated by analysts. Excluding cars and gasoline, sales increased 0.7% more than 0.5% in August.

Investors reacted positively to the data as US stock indices are rising 0.50-0.65%, while US Treasury yields trim this week’s losses.

Additionally, the University of Michigan Consumer Sentiment Index came in at 71.4, down from the 72.8 expected by investors, the second-lowest reading since 2011, as consumers became more concerned about current conditions and the economic outlook.

AUD / USD Price Forecast: Technical Outlook

The AUD / USD daily chart shows that the pair is sloping higher, has the 100-day moving average (DMA) below the spot price and the relative strength index (RSI) at 65, which is pointing higher, supports the uptrend. However, to accelerate the bullish move, a daily close above the September 3 high at 0.7477 could open the way to the 100 DMA at 0.75670.

Technical levels

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