AUD/USD: Bears attack 0.7600 on Aus retail sales miss

The AUD/USD pair is seen accelerating the downside as the European traders hit their desks and react to the worse-than expected Australian retail sales print, which knocked-off the rate to lows at 0.7600 levels.

The Aussie extends its three-day losing streak amid ongoing USD strength and weaker base metal prices, while today’s downbeat Australian economic data further aggravated the selling pressure seen around the spot.

The Aus retail sales data arrived at -0.1% versus 0.3% expectations and 0.4% last.  Meanwhile, markets ignored solid Australian building approvals data, which jumped 8.3% versus -1.4% exp and 2.2% last.

Also, yield differential between the 10-year US treasury yields and 10-year Aus govt bond yields also exert downward pressure on the Aussie. Australia 10-year bond yield hits 5-week low

All eyes now remain on the USD dynamics ahead of the US ISM and Markit manufacturing PMI reports due later in the NA session for fresh impetus on the spot.

AUD/USD Levels to watch   

At 0.7603, the pair finds the immediate support located at 0.7584 (Mar 28 low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7550 (200-DMA/ psychological mark) and below that 0.7523/00 (100-DMA/ zero figure). On the flip side, the immediate resistance at 0.7643/44 (50 & 20-DMA) above which gains could be extended to the next hurdle located 0.7692/0.7700 (Mar 22 high/ round number) and 0.7752 (4-month tops).