AUD/USD: Mildly offered below 0.7600 despite strong Aussie Retail Sales
- AUD/USD refreshes intraday low even as Australia prints upbeat figures of November’s Retail Sales.
- Trading sentiment stays mildly heavy amid an easy session with eyes on US stimulus, virus updates.
- US Final GDP, risk catalysts can entertain traders during final active week of 2020.
AUD/USD drops to the fresh low of the day, down 0.14% intraday to 0.7571, during the early Tuesday. In doing so, the aussie pair ignores the upbeat prints of Australia’s November month Retail Sales figures while taking clues from the mild risk-off mood amid an easy session.
As per the Preliminary readings, Australia’s Retail Sales jumped 7.0% MoM versus 1.4% during November. With this, the retail sales grew for the third consecutive month while also marking the biggest rise since early July.
Even so, AUD/USD fails to cheer the upbeat data as trading sentiment remains dull. Global traders seem to digest the recent improvements in the Brexit talks while waiting for the US coronavirus (COVID-19) aid package as Capitol Hill votes on the much-awaited stimulus. Further, the fresh variant of the covid backs calls of national lockdown in the UK while over 40 countries have already cut air-tier with Britain.
Amid these plays, S&P 500 Futures drop 0.10% whereas Japan’s Nikkei and Australia’s ASX 200 are mildly offered too by press time.
Having seen the initial reaction to the key Aussie data, AUD/USD traders will wait for the formal announcement of the US COVID-19 aid package for immediate direction, mostly upside. However, any further negatives concerning the new strain of the covid and Brexit may test the bulls.
Technical analysis
AUD/USD bounced off 21-day SMA, at 0.7455 now, but need to cross the previous day’s high of 0.7615 to recall the buyers. Meanwhile, an ascending trend line from November 02, currently around 0.7520, can offer immediate support during fresh downside.