AUD/USD: Australian dollar soared on dollar's slump

  • AUD soared on broad weakness in USD after muted retail sales.
  • Higher commodities are also helping AUD today.
  • Focus now on AU job report.

 

AUD/USD is now trading around 0.7910, in the New York session,  after soaring by almost 0.65% on a plunge in greenback amid muted retail sales and subsequent GDP downgrade. AUD is also being helped by upbeat commodities prices,  on a lower USD.

Although, US CPI today print was upbeat, retail sales came subdued. As a result, Atlanta Fed has lowered their Q1 GDP projections to 3.2% from 4% earlier, on weak consumer spending or private consumptions.

Apart from Atlanta Fed, several other investment banks such as Morgan Stanley, JP Morgan, BAML, Barclays had lowered their GDP projections to around 2.5% from around 3% before.

AUD is also being boosted by prospects of a blockbuster AU job report tomorrow with an estimate of 15.3k against 34.7k prior. Full time employment and wage growth may be also in focus.

Technical View:

Price action suggests that AUDUSD now has good support around 0.7750 and sustaining above 0.7947, it may further rally towards 0.7991-0.8055 and 0.8083-0.8136.

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