AUD/USD: Bears eye a test of 0.7800 on awful Aus retail trade
The AUD came under the bus against its American counterpart in the Asia, following the release of worse-than expected Australian retail sales data, which outweighed better trade surplus print.
AUD/USD: 0.7820 support tested
The Aussie remains heavily offered as bearish retail sales report fuelled concerns over the economic outlook, which could keep the RBA away from raising interest rates sooner. Australia retail sales post biggest fall since March 2013
Moreover, resurgent USD demand across the board on firm US data and rising Fed rate hike expectations also collaborated to the renewed downside in the spot. Further, reduced appetite amid subdued Asian stocks and oil prices also weighs down on the higher-yielding currency AUD.
Focus now shifts towards the US jobless claims, factory orders and trade figures for fresh trading impetus ahead of the Fedspeaks and key US NFP release
AUD/USD Technical Levels
Jim Langlands at FX Charts out with a preferred strategy for the Aussie: “The Aud remains choppy and rangebound either side of 0.7850, pretty much where it currently sits. The dailies still point lower though, so overall I still prefer to sell into strength. Sell AudUsd @ 0.7900. SL @ 7945, TP @ 7785.”