AUDUSD trades in narrow trading range ahead of the important US retail sales data later today. US Retail Sales report for October will be out at 1330 GMT and is expected to rebound from disappointing figures in September.
Analysts expect US retail sales to register a 0.3% gain in October, the September reading came in at -0.3% below the market consensus of 0.2%. Weak auto sales will keep sales subdued for October despite solid consumer spending.
RBA has already cut rates three times and sounded cautiously optimistic, pointed out that a turning point appears to have been reached.
Australia’s growth has been cut for full-year 2019 and next year as the IMF predicts a weak year for the global economy. World Economic Outlook, predicts Australia to grow at 1.7% in 2019, down from a predicted 2.1%.
The pair consolidates today at monthly lows ahead of the retail sales data that would provide a catalyst for the pairs next move. AUDUSD failed the previous week to break above the three-month highs at 0.6929 and started a correction; AUDUSD breached yesterday the 50-day moving average and now the short term outlook is bearish.
On the downside, first support for AUDUSD stands at 0.6779 the today’s low and then at 0.6750 the low from October 17th. A sustained move below will open the way for a visit down to 10-year lows.
On the upside, first resistance stands at 0.6798 today’s top and then at 0.6814 the 50-day moving average high from October 31st, above that the next hurdle stands at 0.6937 the 200-day moving average. Investors might initiate long positions if the pair close convincingly above the 100-day moving average that might lead to three month highs.More content