Key Points
- The Aussie Dollar traded down vs the US Dollar recently, and may break the 0.7200 support in the short term.
- There was a support trend line formed on the hourly chart of the AUDUSD pair, which was broken by the sellers.
- Australian Retail Sales released by the Australian Bureau of Statistics posted a rise of 0.2% in April 2016, which was lower than the forecast of 0.3%.
- Australian trade balance released by the Australian Bureau of Statistics posted a trade deficit of -1,579M in April 2016.
Technical Analysis
The Aussie dollar after trading as high as 0.7299 failed vs the US dollar, and moved down. There was a support trend line formed on the hourly chart of the AUDUSD pair, which was cleared by the sellers during the downside move.
The AUDUSD pair moved below the 100 hourly simple moving average, and as of writing attempting to break the 200 hourly SMA.
There is a chance of sellers clearing the 200 SMA and taking the pair below the 0.7200 support area in the short term.
Australian Retail Sales
Today, 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 expecting a rise of 0.3% in sales in April 2016. However, the result was disappointing, as there was an increase of 0.2%, less than the forecast.
The report added that the “following industries rose in trend terms in April 2016: Clothing, footwear and personal accessory retailing (0.8%), Cafes, restaurants and takeaway food services (0.3%), Household goods retailing (0.2%) and Other retailing (0.2%). Food retailing (0.0%) was relatively unchanged. Department stores (-0.1%) fell in trend terms in April 2016“.
Overall, there was hardly anything for the Aussie Dollar buyers, and that is the reason why the AUDUSD may trade down further.
