Strong Retail Sales to Give the AUD/USD a Boost
Rowan Crosby • 1 min read
It’s only very early in the trading week, but the AUD/USD is off to a flying start thanks to some stronger than anticipated data points.
Retail sales, which is a good indicator of the economy and sentiment, came in above expectations. We saw a monthly increase of 0.4% vs 0.2% expected. We also saw a beat in company profits at 5.9% QoQ, which added to the strong morning.
The AUD/USD is in the green on the session and looking strong. It’s a big week ahead for the Aussie as we have a raft of data due for release.
The headlines acts include GDP and the RBA. There is expected to be no change in official rates, however the accompanying statement might make for interesting reading.
Aside from the retail sales data today, much of the recent data has been mixed. So it appears increasingly likely of no rate changes in 2018.
Right now we are testing 0.7600, which is somewhat of a round number level and one that we have been struggling with for a while.
There’s a tiny bit of resistance around the 0.7617 area, but not a whole lot. If we do find some momentum we might very well break out to the upside.
However, I don’t think that will happen. Fresh from some strong US employment data, I feel like the USD might well continue to strengthen over the week.
And unless we get a very hawkish tone from the RBA, then I suspect we might well be topping out around this area. Time will tell and it’s only early on a Monday.
AUD/USD – 240 min Chart.