AUDUSD Clings to Support as Retail Sales Top Forecasts

Despite yesterday’s disappointing labor market figures from Australia, AUDUSD has managed to hang on to support in today’s trading. Thanks to the better-than-expected retail sales report, the currency pair is trading in the green. As of this writing, AUDUSD is up by 0.09% at 0.6858.

According to the Australian Bureau of Statistics, consumer spending rose by 16.3% during the month. It is a significant improvement from the 17.7% contraction that we saw the month prior. However, it is worth noting that this does not reflect consumer spending for May where we saw the contraction in jobs yesterday. With that said, it may not be the most timely statistic to reflect the health of the economy.

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AUDUSD Outlook

On the daily time frame, it can be seen that AUDUSD is still testing the support on the rising trend line (from connecting the lows of March 20 and May 14).

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It’s also worth pointing out that on the 1-hour time frame, it can be seen that the currency pair is consolidating with a downward slope. When you enroll in our free forex trading course, you will learn that this chart pattern is considered as a bullish reversal indicator. A strong close above yesterday’s highs at 0.6901 could mean that there may be enough buyers in the market to push AUDUSD to its June 16 highs at 0.6975.

On the other hand, a bearish close below yesterday’s lows at 0.6835 could mean that sellers are dominating trading. Should this happen, we could soon see AUDUSD fall to near-term support at 0.6775 where the currency pair bottomed at June 15.More content