Aussie Weakens Despite Robust Retail Sales Data, downside pressure likely; April 21, 2021

Australia’s Retail Sales Data

Today Australia released Retail sales data at 0130 GMT/0700 IST with positive numbers. It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity. This is the earliest look at vital consumer spending data.

According the Actual Data, Aussie should strengthen against major peers but here the scenario is different. Aussie is depreciating against major peers after data release. It might be short term trend reversal. Here one has to keep in mind two immediate levels to forecast the future directions and they are $0.7702 to $0.7740 mark. A sustained break of either side will decide the future path.

Technical View:

AUD/USD: The Aussie weakens sharply against U.S. dollar despite higher than expected retail sales data. The pair made intraday high at $0.0.7736 and low at $0.7711 mark. A day chart suggests up trend while H1 chart with triple EMA confirms bearish trend for the time being. A sustained close above $0.7740 on H1 chart requires for the upside rally. Alternatively, current downside movement will drag the parity down below $0.7700 mark.

Key Resistances: $0.7740, $0.7770, $0.7790, $0.7812, $0.7849

Key Support: $0.7702, $0.7677, $0.7638, $0.7622, $0.7590

Take a look and do trade wisely!
Thank you