AUD/USD Trades Lower After US Retail Sales Control Group Data

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The AUD/USD currency pair on Friday continued to trade within a consolidative triangle formation. This came amid increased bearish pressure. The currency pair is now pinned to the 100-hour SMA line in the 60-min chart. The 200-hour SMA is a few levels higher.

From a wider perspective, the pair continues to trade within a slightly ascending channel. This indicates a short-term bullish bias in the market sentiment. The recent pullback has prevented it from reaching overbought levels of the 14-hour RSI.

AUD/USD Fundamentals Overview

From a fundamental perspective, the AUD/USD currency pair is trading at the back of a relatively busy period in both markets. In Australia, the wage price index for Q2 missed both the (QoQ) and (YoY) expectations of 0.3% and 1.9%, respectively with 0.2% and 1.8%. On Thursday, the consumer inflation expectations for Augst came short of 3.4% with 3.3%. On the other hand, the seasonally adjusted employment change and the unemployment rate for July outperformed 40k and 7.8% with 114.7k and 7.5%, respectively.

In the US, the retail sales control group beat the expected change of 0.8% with a change of 1.4%. General retail sales missed the (MoM) expectation of 1.9% with 1.2% while retail sales ex-autos outperformed 1.3% with 1.9%. The preliminary nonfarm productivity and unit labor costs for Q2 beat 1.5% and 6.2%, respectively with 7.3% and 12.2%. Industrial production for July was in line with the (MoM) expectation of 3% while the preliminary Michigan Consumer Sentiment Index for August beat 72 with 72.8.

AUD/USD Technical Analysis (the 60-min Chart)

Technically, the AUD/USD currency pair appears to be trading within a consolidative triangle formation in the 60-min chart. The top part of the triangle appears to be steeper than the base. This indicates a slight bearish bias.

The bulls will be targeting short-term rebound profits at around 0.7191 or higher at 0.7237. On the other hand, the bears will look to pounce for profits at around 0.7120 or lower at 0.7078.

AUD/USD Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair appears to be trading within an ascending channel This indicates a long-term bullish bias in the market sentiment. The pair is close to crossing over to overbought levels of the 14-day RSI. 

The bulls will be looking to maintain control of the pair by targeting profits at around 0.7303 or higher at 0.7449. On the other hand, the bears will look to pounce for profits at around 0.7014 or lower at 0.6852.

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