Key Points
- The Aussie dollar remains supported near 0.7350 against the US Dollar.
- There is a bullish trend line formed on the hourly chart of AUDUSD, acting as a support near 0.7350-0.7355.
- Today, the Australian Retail Sales report was released by the Australian Bureau of Statistics.
- The result was on the lower side, as there was a rise of 0.2% in Nov 2016, less than the forecast of +0.4%.
AUDUSD Technical Analysis
The Aussie dollar started moving higher from the 0.7288 low against the US Dollar and closed above the 0.7300 level. There is a bullish trend line formed on the hourly chart of AUDUSD, providing support near 0.7350-0.7355.
Later, the pair is also above the 21 hourly simple moving average, and remains supported. As long as the pair is above the trend line support or 0.7350, there are chances of more gains.
The next stop could be around the 1.618 extension of the last drop from the 0.7355 high to 0.7288 low at 0.7396.
Australian Retail Sales
Today during the Asian session, the Australian Retail Sales, which is a survey of goods sold by retailers is based on a sampling of retail stores of different types and sizes was released by the Australian Bureau of Statistics. The market was aligned for a 0.4% rise in sales in Nov 2016, compared with the previous month.
The result was on the lower side, as there was a rise of 0.2% in Nov 2016. The report added that the “following industries rose in trend terms in November 2016: Household goods retailing (0.9%), Food retailing (0.4%), Cafes, restaurants and takeaway food services (0.5%), Clothing, footwear and personal accessory retailing (0.2%) and Other retailing (0.1%). Department stores (0.0%) was relatively unchanged”.
Overall, it looks like the AUDUSD pair is well supported on the downside, and may head higher towards 0.7400 in the short term.
