Search ForexCrunch
  • The Aussie’s last-minute bounce on Friday heads into the new week facing trade headline challenges.
  • AUD Retail Sales kick off the new week, sluggish growth expected.

The AUD/USD is trading near 0.7565, near Friday’s close as  Monday starts off with a middling  stance ahead of the Retail Sales figures due early.

The Aussie climbed on Friday following US NFP figures that came in solid, boosting risk appetite to end a week that was notably on the soft side of market sentiment. Following the US’ decision later in the week to impose steel and aluminum tariffs on key US allies, ongoing geopolitical tensions will likely continue to eat away at traders’ willingness to buy up riskier assets.

This week starts off with Aussie Retail Sales at 01:30 GMT, expected to print at 0.2% compared to the previous showing that flatlined at 0.0%. Company Gross Operating Profits, expected at 3.0% versus the 2.2% last, as well as ANZ Job Advertisements for May, which last showed a -0.2% contraction, are also dropping at the same time. This week also delivers another outing from the Reserve Bank of Australia (RBA), which will be popping up on Tuesday at 01:30 GMT for their latest interest rate decision. Australia’s rates are widely expected to remain flat for the foreseeable future, but traders will be keeping an eye on the RBA’s statements to see if they can pick up on any changes to the language used.

AUD/USD levels to watch

FXStreet’s own Valeria Bednarik on the pair’s technical stance that is tilting to the downside: “the daily chart shows that the pair managed to close above a modestly bullish 20 DMA but also that the 100 DMA crossed below the 200 DMA, both well above the current level. Indicators in the mentioned chart have turned marginally lower within positive levels, indicating that buying interest is still limited. Shorter term, and according to the 4 hours chart, the pair is above  a congestion of moving averages, all together in a 15 pips’ range, while technical indicators also eased in positive territory, overall offering a neutral stance.”

Support levels: 0.7535 0.7505 0.7470  

Resistance levels: 0.7590 0.7620 0.7660