AUD/USD Resumes Decline As Retrace Higher Seems Complete
The AUD to USD rate increased 1.50 cents earlier this month as AUD/USD retraced higher, but it seems like retrace is over and sellers are...
The AUD to USD rate increased 1.50 cents earlier this month as AUD/USD retraced higher, but it seems like retrace is over and sellers are pushing the price down for this forex pair. Even last night retail sales report came on the soft side, despite turning positive after the decline in December.
AUD/USD Daily Chart – Bearish Reversing Pattern
AUD/USD has been on a bearish trend since the end of December, losing around 300 pips in the process, but earlier this month we saw a reversal as the USD retreated lower. However, the 200 SMA stopped the bullish momentum and after several doji xandlesticks which suggested a bearish reversal, the decline is underway already now.
Australian January Retail Sales Report
- January Australia final retail sales +1.1% vs +1.5% expected
- Prior was -2.7%, revised to -2.1%
- Q4 capital expenditure +0.8% vs +0.5% expected
- Prior was +0.6%, revised to 0.3%
- Plant/machinery capex -0.1% vs +0.5% prior
- Building capex +1.5% vs +0.7% prior
The final retail sales for January in Australia came in at +1.1%, falling short of the expected +1.5%. But, it is much better than the 2.1% decline in December. Additionally, the fourth-quarter capital expenditure showed a decent increase of +0.8%, exceeding the expected +0.5%. However, there was variation within the components, with plant/machinery capex declining by -0.1% while building capex rose by +1.5%.
So, despite consumers showing signs of losing steam, the construction industry seems to remain resilient, possibly driven by factors other than interest rates. Overall, these figures provide insights into the state of the Australian economy, particularly regarding consumer behavior and investment trends.
AUD/USD Live Chart
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