- Aussie is on the defensive, having hit session lows below 0.72 soon before press time, courtesy of below-forecast Aussie data.
- Retail sales dropped in December, signaling anemic domestic demand. Meanwhile, imports fell more than exports, driving trade surplus higher.
The AUD/USD pair is feeling the pull of gravity, courtesy of the dismal Aussie data.
The seasonally adjusted retail sales fell 0.4 percent in December, missing the estimated 0.1 percent drop following a 0.4 percent rise in November.
Meanwhile, trade surplus widened to AUD 3,681 million, beating the forecasted rise to AUD 2,300 million from the November figure of AUD 1,925 million. The uptick in surplus, however, is largely driven by a 6 percent drop in imports.
A contraction in both the retail sales and imports indicates anemic domestic demand. Put simply, the Australian economy could see a deeper slowdown in the near future as consumption is unlikely to compensate for the weakness in the international trade, as represented by the 2 percent drop in exports.
As a result, the AUD is likely to remain offered ahead of the Reserve Bank of Australia (RBA) rate decision, scheduled for 03:30 GMT. The central bank is widely expected to keep rates unchanged at the record low of 1.5 percent.
As of writing, the AUD/USD pair is trading at the session low of 0.7195 - down more than 15 pips post-Aussie data release.
AUD/USD Technical Levels
AUD/USD
Overview:
Today Last Price: 0.7213
Today Daily change: -15 pips
Today Daily change %: -0.17%
Today Daily Open: 0.7225
Trends:
Daily SMA20: 0.7183
Daily SMA50: 0.7169
Daily SMA100: 0.7174
Daily SMA200: 0.729
Levels:
Previous Daily High: 0.7255
Previous Daily Low: 0.721
Previous Weekly High: 0.7296
Previous Weekly Low: 0.7138
Previous Monthly High: 0.7296
Previous Monthly Low: 0.6684
Daily Fibonacci 38.2%: 0.7227
Daily Fibonacci 61.8%: 0.7238
Daily Pivot Point S1: 0.7205
Daily Pivot Point S2: 0.7185
Daily Pivot Point S3: 0.716
Daily Pivot Point R1: 0.725
Daily Pivot Point R2: 0.7275
Daily Pivot Point R3: 0.7295
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