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3 Sep 2015
AUD/USD: Bears unstoppable post poor retail sales, re-tests 0.7000
FXStreet (Mumbai) - The Aussie remains heavily subdued in the European morning, with the AUD bears exerting renewed pressure as European traders hit their desks, digesting the weaker Aus retail sales print.
AUD/USD on its way to 6-1/2 year lows
Currently, the AUD/USD pair trades -0.43% lower at 0.7007, bouncing off a brief dip below 0.70 barrier. The AUD/USD pair keeps pushing lower as markets continue to dump the Australian dollar after an unexpected decline in Australian retail sales in July raised speculations whether rate cuts might resurface on the Reserve Bank of Australia's (RBA) radar.
Retail sales fell 0.1% in July after rising a revised 0.6% in June, Australian Bureau of Statistics (ABS) data showed on Thursday, while the market forecast was for a 0.4% rise in sales in July.
On Wednesday, the Aussie dropped to fresh six and a half year lows at 0.6982 after the Australia’s GDP report showed growth easing during the June quarter.
GDP growth slowed from 0.9% in the March quarter to 0.2% last quarter, missing the market forecast of a 0.4% increase. On an annual basis, the gauge rose 2.0% last quarter, slowing from 2.3% in Q1.
Meanwhile, traders now look forward to a batch of key US economic data due later today for further momentum on the Aussie pair.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7048 (Today’s High) levels, above which gains could be extended to 07100. On the flip side, support is seen at 0.6980 (Sept 2 Low) levels from here it to 0.6950 (early 2009 levels).
AUD/USD on its way to 6-1/2 year lows
Currently, the AUD/USD pair trades -0.43% lower at 0.7007, bouncing off a brief dip below 0.70 barrier. The AUD/USD pair keeps pushing lower as markets continue to dump the Australian dollar after an unexpected decline in Australian retail sales in July raised speculations whether rate cuts might resurface on the Reserve Bank of Australia's (RBA) radar.
Retail sales fell 0.1% in July after rising a revised 0.6% in June, Australian Bureau of Statistics (ABS) data showed on Thursday, while the market forecast was for a 0.4% rise in sales in July.
On Wednesday, the Aussie dropped to fresh six and a half year lows at 0.6982 after the Australia’s GDP report showed growth easing during the June quarter.
GDP growth slowed from 0.9% in the March quarter to 0.2% last quarter, missing the market forecast of a 0.4% increase. On an annual basis, the gauge rose 2.0% last quarter, slowing from 2.3% in Q1.
Meanwhile, traders now look forward to a batch of key US economic data due later today for further momentum on the Aussie pair.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7048 (Today’s High) levels, above which gains could be extended to 07100. On the flip side, support is seen at 0.6980 (Sept 2 Low) levels from here it to 0.6950 (early 2009 levels).