- The Aussie managed to recover some market position after risk appetite saw the Greenback take a breather.
- Today’s Retail Sales and Trade Balance double-header gives the AUD an opportunity to extend its gains.
The AUD/USD is trading a touch under the 0.7400 key level after Tuesday’s trading brought the pair back from the brink. The Aussie recovered yesterday after marking in a new low for 2018 at 0.7310, but overall markets took a step higher and the US Dollar receded, allowing the AUD/USD a chance to peak at 0.7404. The pair now rests at 0.7385 ahead of Wednesday’s Retail Sales and Trade Balance figures.
Australia’s latest Trade Balance and seasonally-adjusted Retail Sales figures drop at 01:30 GMT today, and Retail Sales for May are expected to contract slightly from 0.4% to 0.3%, while May’s Trade Balance is expected to clock in at $1.2 billion, compared to the previous reading of $977 million.
The Aussie’s recovery on the back of a resurgence in risk appetite appears to have stalled for now, and today’s data will have to post up improving numbers in order to entice bulls back into the fold further, as a failure to recapture the key 0.7400 level decisively will see further bearish moves into the year’s lows.
AUD/USD levels to watch
As noted by FXStreet’s own Valeria Bednarik, “the 4 hours chart presents a neutral technical stance, as despite the recovery, indicators remain directionless around their midlines, while the pair settled a few pips above a horizontal 20 SMA, but below a bearish 100 SMA. The 0.7440 is still the key resistance to overcome to see a more constructive upward stance in the pair.”
Support levels: 0.7345 0.7310 0.7280
Resistance levels: 0.7410 0.7440 0.7490
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