AUD/USD awaits key Retails Sales data for next catalyst

By FXStreet FXStreet (Guatemala) – AUD/USD is holding on to territory on the 0.70 handle and supported on a positive crossover in the 20/50 SMA on the 30-minute sticks.

The risk environment turned positive again overnight with a better performance from the Chinese market yesterday and the Aussie held on to the 0.70 handle despite early pressures and a poor GDP Q2 data that arrived as 2.0% vs 2.2% expected Y/Y and 0.2% vs 0.45 M/M. The Chinese stocks were trimming earlier losses in Asia yesterday, from an open of -4.4% in the Shanghai Composite down by only 0.2% at the end of trade.

The US session was strong and the new norm is volatility, while down days are met with up days. The theme today was speculation that the Fed will be on hold until 2016 due to the currency wars and Global deflationary outlook, while the Beige Book did not signify that there were any signs of wage growth or inflation in the near term that the Fed would need to act upon any time soon. The ADP report pointed to a non-eventful and inline with expectations Nonfarm Payrolls on Friday with little hidden surprises. S&P 500 futures …read more

Source:: FX Street