Aud/usd turns while the US dollar recovers

• The Aud/USD yields intradic earnings while the US dollar is recovered after the US Hasters dictated fears of recession.
• Investors expect the US to lack Competition to organize substitutes for Chinese goods nationwide.
• The US Hasset expresses a positive development in commercial conversations between Washington and the EU.

The Aud/USD pair renounces its intradic earnings and becomes negative during negotiation hours in North America on Monday. The Aussie torque falls to about 0.6280 from the maximum intradic of 0.6340, since the dollar index (DXY), which tracks the value of the dollar against six main currencies, bounces after visiting about three years of 99.00.

The USD index attracts offers after the director of the National Economic Council (NEC) of the United States, Kevin Hassett, ruled out the possibility of a recession. “100% we don’t expect a recession,” said Hassett in an interview with Fox Business Network. Hasset added that we are making “enormous progress” in tariff conversations with the European Union (EU).

Earlier in the day, the US dollar (USD) faced strong pressure amid fears of a possible recession due to the escalation of the commercial war between the US and China. USA and China have significantly increased import tariffs on each other. Investors fear that this can lead to a slowdown in the American economy, since their environment is insufficient to compensate for the need for goods imported from China. Such scenario is an inflationary for the economy and could significantly reduce the purchasing power of households.

In addition, the positive development in the commercial agreement between the US and the Eurozone is also favorable for the US dollar. This indicates that the commercial war would be limited between the US and China for now.

This week, investors will focus on US retail sales data for March, which will be published on Wednesday. It is estimated that retail sales data, a key measure of consumer spending, have strongly grown 1.4% compared to the increase of 0.2% observed in February.

In the Aussie Front, the intensification of the commercial war between the US and China remains a key concern for Australia’s economic perspectives, given its significant dependence on its exports to China. At the national level, investors will focus on March employment data, which will be published on Thursday. The employment report is expected to show that the unemployment rate accelerated to 4.2% from 4.1% in February.