AUD/USD hits 4-day low after Aussie retail sales unexpectedly dropped in Feb

AUD/USD dropped to a 4-day low of 0.7617 after the data released in Australia showed the retail sales dropped 0.1% m/m in February, compared to the expected figure of 0.3%.

The seasonally adjusted estimate fell 0.1% in February. This follows a rise of 0.4% in January 2017 and a fall of 0.1% in December 2016.

Spike in building approvals fails to rescue the Aussie

Building approvals jumped 8.3% m/m in Feb, but were overshadowed by the drop in the retail sales. Nevertheless, the sell-off in the Aussie has been somewhat restricted, largely due to the strong building approval number. Meanwhile, Australia - ANZ job ads rose 0.3% m/m in March compared to the downwardly revised previous figure of -0.8%.

The Aussie 10-yr bond yield extended losses to hit a session low of 2.675%; the lowest level since Feb 27.

AUD/USD Technical Levels

The spot was last seen trading around 0.7620 levels. A break above the 50-DMA level of 0.7631 would shift risk in favor of a re-test of 0.7679 (Mar 30 high) and 0.77 (zero figure). On the other hand, a breakdown of 0.76 (zero figure) would open doors for a potential break below 0.0.7587 (Mar 28 low) and a drop to 0.7491 (Mar 9 low).