AUD/USD hits fresh 1-1/2 month lows, around mid-0.7100s post-US retail sales
| • The already stronger USD gets an additional boost from upbeat monthly retail sales data.
• Today’s disappointing Chinese macro data continues to dent sentiment around the Aussie.
The AUD/USD pair remained heavily offered through the early North-American session and refreshed 1-1/2 month lows on upbeat US macro data.
The already stronger US Dollar got a minor lift after data released from the US showed the control group retail sales recorded a stronger than expected 0.9% m/m growth in November, even as compared to last month's upwardly revised growth of 0.7% (0.3% reported previously).
The positive reading, to some extent, was offset by larger than expected slowdown in the core sales figures, showing a modest monthly growth of 0.2% as compared to previous month's upwardly revised growth of 1.0%. Meanwhile, the headline retail sales matched consensus estimates and showed m/m growth, again with an upward revision to previous month's reading.
“US retail sales show a strong start to the holiday shopping season. The headline number was affected by falling gas prices but the 0.9% control group and the revision to October, up to 0.7% from 0.3% to point to continuing robust consumer spending and GDP,” Joseph Trevisani, a senior market analyst at FXStreet commented on the report after it was made public.
This, against the backdrop of today's disappointing Chinese macro data, kept exerting downward pressure on the China-proxy Australian Dollar. As Valeria Bednarik, FXStreet's own American Chief Analyst explains: “After two decades of sharp expansion, growth in the world second's largest economy has slowed sharply, and this data just confirms it. Australian mining-based economy is quite dependent on the Asian giant, which consumes most of its production.”
Technical outlook
“Despite having already lost over 60 pips daily basis, largely surpassing its daily average range for this week, further declines are likely with the next support now at 0.7140, en route to 0.7110,” she added further.
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