AUD/USD prints a fresh weekly high around 0.7439 amid positive US economic data

• AUD/USD extends its rally against the greenback for the seventh consecutive day.
• An upbeat market sentiment weighs on the US dollar safe-haven status.
• The PBoC said that Evergrande’s risks to the financial system are “controllable.”
• US Retail Sales rose by 0.7%, better than the 0.2% contraction foreseen.

The Australian dollar advances during the New York session, up some 0.12%, trading at 0.7425 at the time of writing. The market sentiment is upbeat, depicted by European and American stocks rising, whereas commodity-linked currencies like the AUD, the CAD, and the NZD trim earlier losses against the greenback.

DXY stalls at the 94.00 threshold on better than expected US data

The US Dollar Index that measures the buck’s performance versus its peers slides 0.11%, is at 93.87, despite a rebound after three days of consecutive losses, in the US 10-year note yield, which rises four and a half basis points, sitting at 1.561%.

Meanwhile, COVID-19 measures in Australia begin to ease. According to authorities, quarantine required for vaccinated travelers that arrive in New South Wales would not be necessary since November 1. The decision comes as the New South Wales state is set to reach an 80% first-vaccination dose rate on Saturday.

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

Data-wise, the Australian economic docket is absent. Concerning the US, Retail Sales for September surprisingly rose by 0.7%, higher than the 0.2% contraction estimated by analysts. Excluding autos and gas, sales increased by 0.7% more than the 0.5% in August.

Investors reacted positively to the data, as US equity indexes are rising between 0.50% and 0.65%, while the US T-bond yields trim this week’s losses.

Additionally, the University of Michigan Consumer Sentiment Index came at 71.4, lower than the 72.8 expected by investors, the second-lowest reading since 2011, as consumers grew more worried about current conditions and the economic outlook.

AUD/USD Price Forecast: Technical outlook.

The AUD/USD daily chart depicts the pair is tilted to the upside, has the 100-day moving average (DMA) under the spot price, and the Relative Strenght Index (RSI) at 65, which is aiming higher, supports the upward trend. However, to accelerate the upward move, a daily close above the September 3 high at 0.7477 could open the way towards the 200-DMA at 0.75670

AUD/USD KEY LEVELS TO WATCH