FxWirePro: AUD/USD edges lower from 2-month highs at 0.7047, poor Australian retail sales data weigh

AUD/USD chart - Trading View 

AUD/USD edges lower from 2-month highs at 0.7034, trades 0.08% higher at 0.7034 at 0525 GMT.

A below-forecast Australian retail sales data dents Aussie. Risk-on rally in the US stocks overnight supports gains.

The data released by the Australian Bureau of Statistics at 01:30 GMT showed the consumer spending, as represented by retail sales, rose 0.1% m/m in May.

Data missed the expected rise of 0.2% by a narrow margin. Retail sales had dropped by 0.1% in April.

That said, news that Australia’s government is close to securing sweeping tax cut plan may support bullish pressures around the AUD. 

Major trend is bearish. Intraday charts show slight upside bias. Price action has broken above 110-EMA.

Volatility is rising. Scope for gains upto 200-DMA. Breakout at 200-DMA required for bullish continuation.

Focus on the crucial NPF data due later this week for further impetus.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.