AUD/USD Trades Below 0.6900 After US Retail Sales Release
During the North American session, the AUD/USD continued to remain depressed after the release of the US macro data. For now, the pair is trading between 0.6885 - 0.6880 region, and bears are waiting for a break below the 50 SMA (daily) before making new trades.
After the release of the US CPI data, the US Dollar has gained the upper hand against the AUD. As per the data released by the US Census Bureau, retail sales increased by 3% in the month of January. This was much better than the forecast of 1.8% set by the economists.
US Retail Sales Jumped Higher
The core retail sales data jumped by 2.% during the month of January. However, it declined by 0.9% in December, which tells us that the US retail sales have improved a lot in 1 month.
Similarly, the Fed's Empire State Manufacturing Index for the month of February was around -5.8%. Although it is still in negative territory, it has improved a lot from the earlier value of -32.9%!
Both of these data releases make it clear that we can expect more rate hikes from the Fed, which is providing a boost to the US Dollar. And the end result is bearish pressure on the AUD/USD & other dollar-denominated pairs.
Meanwhile, the global risk sentiment is also deteriorating due to the high-interest rates around the globe including in the USA.
So it may be good for the currencies, but it means a sea of red for the equity markets around the globe. This factor is also weighing negatively on the Australian Dollar (AUD) which is risk-sensitive.
If we look at the AUD/USD technicals, the bearish breakdown is now confirmed which means more pain ahead for the AUD bulls. And if we the 50-SMA also breaks down, it would mean further downside.
To conclude, the short-term bias in the AUD/USD is very bearish amid the broader USD strength across multiple pairs.