- Aussie slumps across the board as Australia March retail sales data missed estimates by a big margin.
- According to data released by the Australian Bureau of Statistics (ABS), retail sales stalled in March missing Reuters estimate of a 0.3% m/m growth.
- Investors will now likely scale back the RBA tightening expectations in response to weak retail sales release.
- AUD/JPY is down 0.35% on the day at the time of writing, bias bearish.
- Technical indicators are biased lower. RSI weak below 50 levels and Stochs are well in oversold territory.
- Price action is below major moving averages and -ve DMI dominance supports further downside.
- Scope for test of 61.8% Fib at 79.26. Bearish invalidation likely above 50-DMA at 82.43.
Support levels - 81.37 (50% Fib), 81, 80.50 (Mar 23 low), 79.26 (61.8% Fib)
Resistance levels - 82.08 (5-DMA), 82.43 (50-DMA), 83
Recommendation: Good to go short on rallies around 81.80/82, SL: 82.43, TP: 81.40/ 81/ 80.85
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -92.9484 (Bearish), while Hourly JPY Spot Index was at 126.421 (Bullish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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