AUD/USD remains near six-week low as Aussie retail sales decline

AUD/USD remains depressed near six-week lows after Aussie data.
Australia's retail sales fell by 4.2% in August.
The US dollar is gaining altitude across the board.

Omkar Godbole FXStreet Contributor

The dismal Australian Retail Sales data released soon before press time could bolster the bearish pressures around the Aussie dollar.

As represented by Retail Sales, the consumer spending fell by 4.2% month-on-month in August, following July's 3.2% increase, the preliminary data published at 01:30 GMT showed.

The data validates the Reserve Bank of Australia's cautiously optimistic view of the economic recovery and its commitment to keep the monetary policy loose for a prolonged period.

On Tuesday, the central bank's deputy governor Guy Debelle revealed that official interest rates might not move for at least three years given the headwinds facing the jobs market and inflation. Debelle added that the bank stands ready to boost asset purchases if required.

As such, the Aussie dollar may face more substantial selling pressure during the day ahead. So far, the weak Aussie data has failed to elicit a negative reaction from the Aussie dollar. The AUD/USD pair continues to trade in the red near the six-week low of 0.7128 reached just ahead of the Aussie data.

The US dollar picked up a strong bid on Tuesday after Chicago Federal Reserve (Fed) President Charles Evans sounded less dovish than the recent Fed messaging. The dollar has been gaining ground of late due to the risk aversion in the global equity markets. AUD/USD pair has declined by more than 200 pips since Sept. 18.

Technical levels

AUD/USD

Overview
Today last price	0.7133
Today Daily Change	-0.0037
Today Daily Change %	-0.52
Today daily open	0.717

Trends
Daily SMA20	0.7285
Daily SMA50	0.72
Daily SMA100	0.6989
Daily SMA200	0.6771

Levels
Previous Daily High	0.7236
Previous Daily Low	0.7154
Previous Weekly High	0.7346
Previous Weekly Low	0.7254
Previous Monthly High	0.7416
Previous Monthly Low	0.7076
Daily Fibonacci 38.2%	0.7185
Daily Fibonacci 61.8%	0.7204
Daily Pivot Point S1	0.7137
Daily Pivot Point S2	0.7104
Daily Pivot Point S3	0.7055
Daily Pivot Point R1	0.722
Daily Pivot Point R2	0.7269
Daily Pivot Point R3	0.7302

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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