AUD/USD extends fall on weak retail sales

Everything is going against the Australian dollar. The latest blow came from the publication of retail sales. The volume of sales in April dropped by 0.1% against expectations for +0.3%. To add insult to injury, the figure for March was revised down by 0.1%.

Year over year, consumption is up 2.1%. By another measure, q/q sales rose by a modest 0.1% instead of 0.5% expected. The disappointing domestic news joined worrying signs from China.

Here are 5 reasons for the previous AUD/USD crash[1]. We have new ones coming on a daily basis.

AUD/USD now trades at 0.73743, the lowest since the early days of 2017. After breaking out of range, The Aussie seems to be in a free-fall after losing the 0.7440 level that held it up for some time.

Further support awaits at 0.7310, which was a swing low in November 2016. Even lower, 0.7250 could serve as a cushion ahead of the ultimate support line at 0.7160.

On the topside, AUD/USD could face resistance at 0.7375, a support line back in November. 0.7440 remains significant.

Get the 5 most predictable currency pairs[2]

from Forex Crunch

from Online Forex Trading Resource
View thesource article here


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