More Weak Data for the AUD/USD

The AUD/USD has run into trouble on the back of yesterdays terrible miss with GDP and rightfully so.

Markets were looking to see if the AUD/USD could back it up today but again it appears that the data trend for the moment is quite weak.

Retail sales come out in line with expectations at 0.3%, however, the trade balance appears to have taken a bit of a hit. That came out at 2.361B vs 3.1B expected.

Given the backdrop of a what’s going on in world markets, I feel that we might have a bit more downside ahead. The risk-off feel is gaining steam and it looks like we are headed for another weak day on Wall Street to add to Tuesday’s carnage.

Aussie Outlook

The AUD/USD dropped the major level at 0.7300 yesterday and I can’t see us regaining that handle anytime this week.

Now that 0.7300 has gone, my next downside target is 0.7200. Given the price action this morning, I feel like we are slowly gaining some steam here.

I won’t be long the AUD/USD anytime soon.