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Forex - AUD/USD dives after retail sales data

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Investing.com - The Australian dollar slid against its U.S. rival during Monday's Asian session following the release of disappointing retail sales data.

In Asian trading Monday, AUD/USD slipped 0.46% to 0.8863. The pair is likely to find support at 0.8859, the low from August 31, 2010 and resistance at 0.8969, Friday's high.

After the U.S. jobs report was revealed last Friday, AUD/USD fell to its lowest levels in three years. Earlier Monday, the Australian Bureau of Statistics said that Australian retail sales remained unchanged last month following a 0.2% increase in June. Analysts had expected Australian retail sales to rise 0.4% last month.

The news comes a day before the Reserve Bank of Australia meets and as traders are upping bets RBA will again lower interest rates.

Last week, the Aussie came under pressure after RBA Governor Stevens said earlier in the week that second-quarter inflation data suggests that there is still room to lower interest rates if necessary and that he wouldn't be surprised if the currency dropped further.

Australia's benchmark interest rate is currently 2.75% and some traders believe that even if RBA does not cut rates this month, it is all but assured the central bank will do so again before the end of the year.

Elsewhere, AUD/NZD soared 0.81% to 1.1454 as shares of dairy giant Fonterra also plunged after the company confirmed it had sold contaminated whey protein to eight different buyers in China, Malaysia, Vietnam, Thailand and Saudi Arabia

AUD/JPY fell 0.45% to 87.71 while EUR/AUD rose 0.38% to 1.4974.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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