The AUD/USD Lower Ahead of Retail Sales
Rowan Crosby • 1 min read
The AUD/USD has strong lately, but we are seeing some selling in today’s Asian session.
The big number this week is retail sales. Last week KMD an Australian retailer reported less than impressive Xmas sales, which sent the retailers tumbling.
However, today a few other large players have come out and suggested they’ve seen stronger sales. A larger wholesaler of fresh fruit and vegetables, CGC however, put in a shocker.
So basically we are still seeing a bit of a mixed bagged in regards to the retails sales.
The other consideration is that the number is in fact for November, so includes the black Friday type sales promotions. This is a bit of a lagging number, given that companies are starting to report on Xmas, so we will have to wait and see.
The anecdotal evidence is telling me things aren’t all bad, but some of the big analysts disagree. At the end of the day the price action is suggesting that it might well be a poor number and remember it is only price that ultimately matters.
The next major support below is 0.7050 and then 0.7000.
We are also seeing selling in equities as many are saying that the US-China talks are simply hot air and there is nothing much coming out of them.