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Australian Retail Sales is considered  the primary gauge  of consumer spending. The indicator provides analysts and traders with  an early  look at consumer spending. A reading that is higher than the market forecast is bullish for the  Australian dollar.

Here are all the details, and 5 possible outcomes for AUD/USD.

Published on Tuesday  at 00:30 GMT.

 Indicator Background

Consumer spending is one of the most important components of the economy, and strong numbers in this sector signify growth and a stronger economy.

In October, the indicator edged lower to 0.5%, beating the estimate of 0.3%. The forecast for  the November report  stands at 0.4%.

Sentiments and levels

The US economy enters 2017 in excellent shape, and monetary and fiscal divergence is bullish for the greenback ahead of the Trump inauguration. So, the overall sentiment is bearish on AUD/USD towards this release.

Technical levels, from top to bottom: 0.7630, 0.7513, 0.7427, 0.7311,  0.7223 and 0.7148.

5 Scenarios

  1. Within expectations: 0.1% to 0.7%: In such a case, the Aussie is likely to rise within range, with a small chance of breaking higher.
  2. Above expectations: 0.8% to 1.2%: An unexpected higher reading can send AUD/USD well above one resistance line.
  3. Well above expectations: Above 1.2%: Such an outcome would propel the pair upwards, and a second resistance line might be broken as a result.
  4. Below expectations: -0.4% to 0.0%: A negative or zero reading could push AUD/USD below one level of support.
  5. Well below expectations: Below -0.4%: In this scenario, the Aussie could break a second support level.

For more about the Aussie, see the AUD to USD forecast.