Above-forecast Aussie retail sales push AUD/USD above 0.72

The AUD/USD pair jumped to a session high of 0.7204 following the release of an upbeat Aussie retail sales data.

The consumption, as represented by retail sales, rose 0.4 percent month-on-month in November, beating the estimated print of 0.3 percent, according to Australian Bureau of Statistics (ABS). In annualized terms, the retail sales rose 3.6 percent.

Despite the above-forecast print, the AUD managed to add only 12 pips and is struggling to find acceptance above the psychological level of 0.72, possibly due to the minor bounce in the USD/CNH pair. Currently, that pair is trading at 6.79, having clocked a low of 6.77 yesterday.  

Moreover, a convincing break above 0.72 could remain elusive, as the offshore Chinese yuan - the anchor for FX markets - is looking overbought on the short duration technical charts. As a result, the USD/CNH pair could see a stronger bounce, helping the US dollar regain some poise across the board. 

The gold market is also showing similar signs. The yellow metal, which usually leads other currencies, is showing signs of bullish exhaustion near $1,300. Put simply, a corrective bounce in the US dollar is overdue. 

As of writing, the AUD/USD pair is trading at 0.7190. 

AUD/USD Technical Levels