AUD/USD remains depressed below 0.7000 mark ahead of US macro data
- AUD/USD witnessed some fresh selling on Thursday amid a modest pickup in the USD demand.
- The risk-off mood underpinned the safe-haven USD and weighed on the perceived riskier aussie.
- Investors look forward to important US macro data for some meaningful trading opportunities.
The AUD/USD pair maintained its offered tone through the mid-European session, albeit has managed to recover few pips from daily lows.
The pair met with some fresh supply on Thursday and extended the previous day's retracement slide from over one-month tops – levels beyond the key 0.7000 psychological mark. The Australian dollar was weighed down by rather disappointing domestic employment details, which showed that the unemployment rate rose to 7.4% in June from 7.1% previous. Bulls also seemed rather unimpressed by upbeat Chinese macro data.
Concerns over worsening US-China relations took its toll on the global risk sentiment. The anti-risk flow was evident from a fresh leg down across the global equity markets. This, in turn, helped revive demand for the safe-haven US dollar and drove flows away from perceived riskier currencies, including the aussie.
Market participants now look forward to the US economic docket, highlighting the release of monthly Retail Sales, Philly Fed Manufacturing Index and Initial Weekly Unemployment Claims. The data, along with the broader market risk sentiment might influence the USD price dynamics and produce some short-term trading opportunities.
Technical levels to watch