The AUD/USD has jumped higher on the back of what was really a shock result in retail sales.

Headed into the number there had been plenty of talk about just how bad things were for the retailers. KMD, a big Australian retailer recently reported a weak holiday period and for many that translated into what would likely be a weaker than expected print today. Not the case.

The official monthly figure came in at 0.4% which was above the 0.3% expected.

The AUD/USD jumped on the news before retracing.

The main consideration here though is that this is the November number. So it doesn’t include the Christmas period, which is generally the biggest of the year for obvious reasons.

So we will have to wait to see what comes of things with companies reporting in February and also the release of the next months number.

Aussie Outlook

The AUD/USD is testing the major level at 0.7200 and is looking strong today.

The major support below is 0.7050 and then 0.7000.

There is resistance around 0.7235, but not much else until the round number.