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2/5/2021 3:42:14 PM GMT
The RBA maintained the cash rate at record lows, expanded quantitative easing.
Hopes for a fresh stimulus package in the US maintained markets optimistic.
AUD/USD could extend its decline, but losses likely to be moderated.
It was a dull week for AUD/USD in terms of price action, as, after gapping lower at the opening, it is closing it unchanged in the 0.7610 price zone. The greenback was the clear weekly winner, appreciating sharply against most of its major rivals. Aussie’s declines were limited by the equities positive momentum, as Wall Street flirted with record highs.
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Upbeat Australian employment data pushed AUD/USD higher.
Australia will publish this Friday the preliminary estimate of January’s Retail Sales.
AUD/USD is bullish, consolidating gains above the 0.7700 threshold.
The AUD/USD pair peaked at 0.7780 this Thursday, boosted by encouraging Australian employment data. The country added 50K new job positions as expected in December, 36.5K of them full-time positions. The unemployment rate came down to 6.6% from 6.8%, beating expectations of 6.7%. Consumer Inflation Expectations in the country stood at 3.4% in January, down from 3.5% in the previous month.
During the upcoming Asian session, Australia will publish the preliminary estimate of January Retail Sales, previously at 7.1%. The country will also release the Commonwealth Bank Services PMI, foreseen at 57.4 from 57 previously, and the Manufacturing PMI, expected at 55.9 from 55.7.