AUD/USD
AUD/USD

The AUD/USD was almost at a standstill earlier on Friday. The pair inched slightly higher and was trading at $0.7244 after the release of Australia’s retail sales data.

Retail Trade

The retail trade figures released by the Australian Bureau of Statistics (ABS) show that the Australian retail turnover declined 2.7% in July 2021. The decline in July’s retail trade was the largest monthly fall this year, after a 1.8% fall in June 2021.

According to Ben James, Director of Quarterly Economy Wide Surveys, the lockdown restrictions in most Australian states heavily weighed on retail trade. The reimposing of strict virus restrictions saw many non-essential retail businesses closing their physical stores. The first full-month lockdown in New South Wales saw the state’s retail turnover slip 8.9%, the largest fall since August 2020.

The largest fall by industry was recorded in clothing, footwear, and personal accessory retailing, which inched 15.4% lower. The retail volume sales in restaurants, cafes, and takeaway food services fell 12.3%. On the flip side, food retailing recorded the largest increase as the restrictions kept people at home, hence limiting their mobility.

Investors are now eyeing Jerome Powell’s speech later today after the end of the Fed’s two-day annual Jackson Hole symposium. They are hoping to get clues on when the Federal Reserve plans to start the scaling down of monthly asset purchases.

AUD/USD Technical Analysis

For the past week, the AUD/USD pair has been on a downward trend. In its previous trading session, the currency pair closed in lower after a decline in the US real GDP data for the second quarter.

On the 4-hour chart, the pair is trading along with the 25 and 50-day exponential moving averages. The pair is also trading below the 200-day moving average, which is a bearish indicator.

Therefore, the AUD/USD pair is likely to extend its bearish outlook before bouncing back. A move past the 200 DMA will have the bulls eyeing the resistance at $0.7500. However, a move below the support level at $0.7100 will invalidate this view.

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get exclusive content in your inbox.

You May Also Like

EUR/USD Forecast Ahead of US Inflation and Retail Sales Data

The EUR/USD pair surged on Friday after the disappointing US non-farm payrolls (NFP) data. The US will publish the latest inflation and retail sales data.

GBP/USD Forecast with BoE Interest Rate Decision on the Horizon

GBP/USD is seesawing along 1.3800 ahead of the BoE interest rate decision. It is likely to be range-bound between 1.3800 and 1.3900 ahead of the event.

GBP/USD Forecast Ahead of the UK Retail Sales

GBP/USD has eased on its decline ahead of the UK retail sales data. The data comes at a time when UK government postponed reopening by a month.

AUD/USD rebounds as Fed officials downplay inflation fears

AUD/USD is rebounding after Fed officials downplayed the ongoing inflation fears. US retail sales also missed the estimates by remaining stagnant.