Aussie pips up on upbeat data, while the EUR poses neutral ahead of the ECB monetary policy meeting minutes release. Will this status quo change?
Aussie Adds Pips
Capturing the limelight of Australia’s trade balance upbeat data, the Aussie pips up against its greenback counterpart. In the first hours of the morning, AUDUSD started impetuously near 3-month tops at 0.78718 (daily open). The pair continued to surge, tracking the encouraging monthly retail sales data, which arrived at 1.2% higher (m-o-m) in November, showing a solid growth from a humble rise of 0.5% m-o-m seen in October.
As the US dollar gained some pace, the Aussie seemed to struggle a little to build on its ascending move, while it lacked any strong momentum. The USD recovered on Thursday and managed to reverse an important part of its sharp drop driven by news that China is considering slowing or even stopping its US treasury purchases.
However, a Chinese government source clarified that media reports might be relying on misleading or wrong information, which, in turn, supported the greenback.
As we advance into the trading week, investors are looking forward to the US PPI release and the weekly unemployment claims for more impetus in the buck.
Moved by economic data, Aussie-US dollar hovers about 0.78734. Some resistance may be seen forming around 0.7899 and above.
EUR Poses Neutral
With a quiet economic calendar for the EUR, the single currency seems to be posing a neutral stance against its USD counterpart.
Starting the day at 1.19465 (open daily), the EUR failed to hold up above 1.19500 against the dollar. This discouraging stance of the single currency only boosts the EURUSD potential to break below 1.1916, finding support at 1.1894.
This bearish tendency in the EUR trading today might be changed by the upcoming release of the ECB monetary policy meeting minutes, which might push the EUR higher.