The Australian dollar is stabilized after Mixed economic data from China

• The Australian dollar decreases due to risk aversion amid the growing tensions between Israel and Iran.
• China’s retail sales increased 6.4% year -on -year in May, compared to market expectations of a 5.0% increase.
• The Iranian revolutionary guard shot multiple missiles aimed at military-industrial centers and Israeli fuel facilities.

The Australian dollar (aud) extends its losses against the US dollar (USD) on Monday. The Aud/USD torque remains subdued per second consecutive session due to the climb of tensions in the Middle East. The AUs maintains losses after the publication of China’s key economic data, since Australia and China are nearby commercial partners.

China’s retail sales increased by 6.4% year -on -year in May, exceeding 5.0% expected and the increase of 5.1% in April. Meanwhile, industrial production increased 5.8% year -on -year, but below the scheduled 5.9% and from the previous 6.1%.

Israel and Iran continue to attack each other despite international calls to diplomacy and de -escalated, according to CNN. Iran shot multiple waves of ballistic missiles to Israel. The Iranian revolutionary guard said that its missiles successfully pointed to military-industrial centers and Israeli fuel facilities.

According to local officials, 224 people have been killed in Iran and 14 in Israel. At least 1,277 people have been injured since Israel launched the wave of attacks on Friday, according to Iran’s Ministry of Health.

Iran informed the Mediators Qatar and Oman that Tehran “will not negotiate while under attack,” according to an informed official about the negotiations. The source said that “the reports that Iran have approached Oman and Qatar with a request to involve the United States in the mediation of a high fire with Israel and potentially renew the nuclear negotiations are inaccurate.”

The Australian dollar decreases while the US dollar can be seen in the midst of growing geopolitical tensions

• The American dollar index (DXY), which measures the value of the US dollar compared to six main currencies, is recovering losses and upwards around 98.10 at the time of writing. You will be attentive to the US consumer’s feeling index of the USA. Later on Friday.
• The University of Michigan (UOM) reported Friday that the consumer’s feeling index rose to 60.5 in June from 52.2 previous. This reading was above the market consensus of 53.5.
• The US Production Price Index (IPP) increased 0.1% month by month in May, compared to a 0.2% drop (reviewed from -0.5%). This reading was softer than the expected increase of 0.2%. Meanwhile, the underlying IPP, excluding food and energy, increased 0.1% month by month in May compared to -0.2% previous (reviewed from -0.4%), below the consensus of 0.3%.
• The Federal Reserve (FED) is expected to maintain its policy rate without changes in the range of 4.25% –4.50% in its next decision on Wednesday. Operators now expect a 25 basic points rate cut for September.
• Reuters reported on Thursday that President Trump expanded steel tariffs from June 23 on the “imported -derived products”, including appliances, such as dishwasher, washing machines, refrigerators, etc. Tariffs were initially imposed at 25% in March and then doubled to 50% for most countries. This is the second time the scope of the affected products is extended.
• President Trump published in Truth Social on Wednesday that the commercial agreement with China is made and added that it is subject to its final approval and that of Chinese President Xi Jinping. “We are obtaining a total of 55% tariffs, China is getting 10%. The relationship is excellent! Thank you for your attention to this matter.”
• China will grant only rare earth export licenses for six months to American manufacturers and motorists, suggesting that China wants to have control over critical minerals such as lever in future conversations, according to the Wall Street Journal (with restricted access).

The Australian dollar maintains losses below the nine -day barrier about 0.6500

The Aud/USD torque is negotiating around 0.6480 on Monday. The bullish bias persists since the technical analysis of the daily graph indicates that the torque is maintained within the ascending channel. In addition, the 14 -day relative force index (RSI) is positioned slightly above level 50, indicating a predominant bullish perspective. However, the PAR is maintained below the nine -day exponential (EMA) mobile average, which suggests that the short -term pricing impulse is weaker.

The immediate resistance seems to be in the nine -day EMA of 0.6495, followed by the maximum of seven months of 0.6538, which was reached on June 5. A rupture above this level could support the torque to aim at a maximum of eight months at 0.6687, followed by the upper limit of the ascending channel around 0.6730.

At the bottom, the AUD/USD torque could test the lower limit of the upward channel around 0.6470. A rupture below the channel would indicate a weakening of the bullish bias and put pressure on the torque to test the 50 -day emma at 0.6425.

AUD/USD: Daily graphic