The Australian dollar found it hard to settle above 0.78 following the positive, yet doubtful GDP report.
Weak US data helped keep the pair bid, but now we have a fall on some weak Australian data, showing us the pair is not that resilient.
Australia reported a huge trade deficit of 3.89 billion in April. This was much worse than the already low expectations for a deficit of 2.17 billion. This is one of the worst on record, and evidence that money is flowing out of the land down under.
At the same, another disappointment came from the retail sales report: the volume of sales remained flat in April, contrary to expectations for an advance of 0.4%. In addition, this came on top of a downwards revision for March: a rise of only 0.2% in contrast to 0.3% predicted.
AUD/USD fell sharply on this simultaneous punch, and lost support at 0.7750. It is still far from the next support level of of 0.7675 but has lost the upwards momentum that accompanied the pair has been somewhat lost.
Here is how it looks on the 30 minute chart:
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