AUD/USD: Australia’s retail sales post the biggest drop since March 2013 in August


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.34% against the USD and closed at 0.7861.

LME Copper prices rose 0.1% or $6.0/MT to $6453.0/MT. Aluminium prices rose 1.2% or $25.0/MT to $2139.5/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7832, with the AUD trading 0.37% lower against the USD from yesterday’s close, following downbeat Australian retail sales data.

Overnight data indicated that Australia’s seasonally adjusted retail sales unexpectedly dipped 0.6% on a monthly basis in August, declining by the most in more than four years, offering further signs of a slowdown in the nation’s consumer spending. Markets had expected for an advance of 0.3%, after recording a revised drop of 0.2% in the prior month.

On the other hand, the nation’s trade surplus widened more-than-anticipated to A$989.0 million in August, following a revised surplus of A$808.0 million in the previous month, while markets had expected for the nation’s trade surplus to widen to A$850.0 million.

The pair is expected to find support at 0.7812, and a fall through could take it to the next support level of 0.7793. The pair is expected to find its first resistance at 0.7863, and a rise through could take it to the next resistance level of 0.7895.

Going ahead, traders will eye the release of Australia’s AiG performance of construction index for September, slated overnight.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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