• AUD/USD eased against the U.S. dollar on Friday as Australian dollar was weighed down by weaker-than-expected domestic retail data and broader risk off sentiment.
• Australian retail sales unexpectedly dipped in April, as warm weather dampened winter clothing demand and fewer discount events hit department stores, highlighting cautious consumer behavior.
• Australian Bureau of Statistics showed retail sales fell 0.1% in April, missing forecasts of a 0.3% rise and ending a three-month growth streak.
• Markets now await the U.S. core PCE price index at 12:30 GMT, expected at 2.5% y/y. As the Fed’s preferred inflation gauge, it could shape rate outlooks.
• At GMT 05:40, the Australian dollar was down 0.06% to 0.6437against the dollar.
• Immediate resistance is located at 0.6505(23.6%fib), any close above will push the pair towards 0.6520(Higher BB).
• Support is seen at 0.6395(38.2%fib) and break below could take the pair towards 0.6359(Lower BB).
Recommendation: Good to buy around 0.6380 with stop loss of 0.6320 and target price of 0.6460
