Aussie Retail Sales dropped unexpectedly, breaking 0.7380
By: ACY May 9, 2017
Chart1: AUD/USD Daily
AUD/USD constantly slipped from 0.7750 to current 0.7380 amid the iron ore fall to bearish market recently. The futures in China concerns the demand in the world top user. The port stockpiles are maintaining a record high and there is a consensus that supply will keep expanding, especially in the second half. The steel industry’s purchasing managers index slumped under 50 in April and the shipments from Port Hedland rose to the highest record this year. Although the RBA seems like not in a hurry to normalise the monetary policy, the shift of fiscal outlook could push Lowe in his mind. US Index climbed above 99. US Labor Market Condition Index Change(April) rose to 3.5, far more better than forecast. There is only one month from FOMC in June. Cleveland Fed Chairman Loretta Mester insist on another two rate hike this year. Furthermore, more and more Fed Officials agree to shrink the balance sheet. According to AUD/USD 4-hour trend, CCI (14) is at -72, the difference of double line in MACD is around 0.00021. The current price is above Fibonacci 61.8% retracement of 0.7382, but may break though shortly.
Chart2: AUD/USD 4-hour Chart
Near-term resistance R1.: 0.7389 R2.: 0.7407 Near-term support S1.: 0.7344 S2.: 0.7327 Recent Events(GMT+8): 09/5/2017 22:00 USD Wholesale Inventories (March) 10/5/2017 20:30 USD Import Price Index.
