AUD/USD keeps losses after Aussie retail sales meet estimates

The weak tone in the AUD/USD pair persists after the Australia retail sales number matched estimates.

The consumer spending as represented by the retail sales came-in line with the estimate of 0.4% m/m. The January number was well above Dec’s contraction of 0.1%. The lack of positive surprise failed to take attention away from the risk-off tone in the broader markets. The currency pair was last seen trading at the session low of 0.7573 levels.

Risk assets under pressure

AUD and other risk assets are under pressure this Monday morning after North Korea fired at least four intercontinental ballistic missiles. The move has been criticized by Japanese PM Abe and may force investors in Europe and US to ditch the risk assets.

Also hurting the pair is hawkish comments from Fed’s Yellen on Friday. The march Fed rate appears to be a done deal, although Friday’s US wage growth numbers could pour cold water on March rate hike plans. 

AUD/USD Technical Levels

Violation at the immediate support level of 0.7556 (Mar 2 low) would expose support zone of 0.7519-0.7530 (100-DMA + 200-DMA + 50-DMA). A daily close below the same would mark trend reversal and open doors for sell-off to 0.7370 (Dec 1 low).

On the higher side, 0.7614 (5-DMA) could offer resistance, which, if breached could yield 0.7650 (10-DMA), above which a strong hurdle is noted at 0.7741 (Feb 23 high).