AUD/USD stays pressured towards 0.7500 on mixed Aussie, China data, covid concerns

• AUD/USD fades bounce off intraday low, fails to extend the heaviest daily bounce in a month.
• Australia Retail Sales improved in May, China Caixin Services PMI eased in June.
• Sydney, Queensland and NSW register uptick in covid infections, Victoria marks zero cases as government ease bias AstraZeneca vaccine.
• US holiday will challenge the momentum traders, risk catalysts remain as the key.

AUD/USD remains mildly offered, down 0.15% intraday around 0.7515 amid early Monday. In doing so, the Aussie pair pays a little heed to the latest data from Australia and China amid downbeat market sentiment.

China’s Caixin Services PMI for June dropped below 55.7 expected and 55.1 prior to 50.3. Earlier in the day, Australia's Retail Sales for May rose past 0.1% preliminary forecast to 0.4% whereas activity data from the Commonwealth Bank and AiG Performance of Construction Index flashed mixed signals for June.

Australia’s coronavirus (COVID-19) conditions remain bleak as increases infections in Sydney, Queensland and New South Wales (NSW) supersede no new covid cases in Victoria. The same propels the new cases by 46 so far during July 05 versus the previous day’s 22 cases.

It should, however, be noted that the Aussie government’s recently changed stance on the AstraZeneca vaccine seems to be a positive catalyst for Australians. That said, the Australian Technical Advisory Group on Immunisation (ATAGI) suggested the AstraZeneca shots for people over the age of 60 years during the weekend. “However, last night Prime Minister Scott Morrison clarified that did not "preclude" people under 60 from getting AstraZeneca,” said ABC News.

Other than Australia’s covid concerns, indecision over the US Federal Reserve’s next moves also weigh on the market sentiment.

Although Friday’s mixed US employment data rekindled expectations that the Fed may wait for further details before backing the monetary policy adjustments, the reassessment of the figures keeps bulls hopeful and weigh on the S&P 500 Futures, down 0.15% intraday, by the press time.

Moving on, a lack of major data/events could keep AUD/USD traders searching for fresh clues under the COVID-19 and monetary policy heads. It’s worth mentioning that Tuesday’s RBA meeting will be the key for the quote even as the Aussie central bank isn’t expected to alter the current monetary policy.

Read: RBA expected to pare back emergency stimulus despite lockdowns – Bloomberg

Technical analysis

AUD/USD justifies early Asia’s bearish Doji candlestick on the four-hour chart while easing below a convergence of 50-SMA and a 13-day-old resistance line, suggesting further weakness towards the previous month’s low around 0.7480-75, not to forget the latest yearly low surrounding 0.7445, flashed on Friday.