Will Weak Retail Sales Dent the AUD/USD Rally?
Rowan Crosby • 1 min read
The AUD/USD had a day to remember, as it has been breaking out to the upside and leaving resistance levels in its wake.
This morning we received some heavy data in Australia. Q3 PPI came out better than expected at 0.8% vs 0.2% expected. A big beat.
However, the more important number which was retail sales was a miss at 0.2% vs 0.3% expected.
So far the AUD/USD hasn’t dipped and has held strong. Perhaps the big beat in PPI is enough to overlook the weak retail sales data.
We’ve also had a very positive lead from China which was a key driver of yesterday’s big move. That is clearly still fundamentally why we are rallying.
The AUD/USD is trading above the major level at 0.7200 in what has been a big move from around 0.7100.
I felt that 0.7150 might slow us down but nope it didn’t even bat an eyelid.
We are now testing 0.7200, which coincides with the top of our channel. The channel has held all year, so it will take a bit of work to break it.
We also have payrolls tonight in the US and a strong number will see the USD regain some lost ground.