AUD/USD: Australis’s retail sales climbed beyond market expectations in May


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.63% against the USD and closed at 0.7385.

LME Copper prices declined 0.2% or $10.5/MT to $6584.5/MT. Aluminium prices rose 0.6% or $12.0/MT to $2165.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7408, with the AUD trading 0.31% higher against the USD from yesterday’s close, followed upbeat economic data.

Early morning data showed that Australia’s seasonally adjusted retail sales climbed 0.4% on a monthly basis in May, driven by changing weather conditions and, beating market expectations for an advance of 0.3%. In the previous month, retail sales recorded a revised gain of 0.5%. Moreover, the AIG performance of services index jumped to 63.0 in June, compared to a reading of 59.0 in the prior month.

Meanwhile, the nation’s seasonally adjusted trade surplus widened less-than-expected to A$827.0 million, from a revised trade surplus of A$472.0 million in the prior month. Markets had anticipated trade surplus to widen to A$1200.0 million.

Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit services PMI index unexpectedly advanced to a 4-month high level of 53.9 in June, defying market expectations for a fall to a level of 52.7. In the prior month, the PMI had recorded a reading of 52.9.

The pair is expected to find support at 0.7349, and a fall through could take it to the next support level of 0.7290. The pair is expected to find its first resistance at 0.7446, and a rise through could take it to the next resistance level of 0.7484.

Amid lack of macroeconomic releases in Australia today, investor would look forward to global macroeconomic events for further clues.

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

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