AUD/USd bulls slow out of the blocks, despite positive retails sales

AUD/USD is at a virtual stand-still in a minor recovery of the heavy supply on the 0.76 handle overnight, despite Australia's Aug retail sales beating expectations.

AUD/USD had otherwise been fragile on the back of a stronger risk tone, gold tanking (sunk roughly $45 a troy ounce daily basis, reaching levels last seen before the Brexit vote) and flows into the greenback preventing bulls an opportunity much through the 0.77 handle, exposing risks to the downside on each failure and fade. We will now look to U.S. data and the ADP employment report as a potental prelude to this week's nonfarm payrolls as the main event. 

"RBA will likely have to tolerate the stronger Aussie"

In respect to the RBA, that left their key policy rate at 1.50%, there were only a few changes in the accompanying policy statement and nothing to ignite any action either side of the quote.However, analysts at Bank of Tokyo Mitsubishi explained that the 'The recent strengthening of the Aussie appears to have prompted a little more unease from the RBA in today's policy statement. The RBA now believes that the lower exchange rate “has been helping” the traded sector which replaced the previous description from September that it “is helping”, adding, "The RBA will likely have to tolerate the stronger Aussie in the near-term as current market conditions remain favourable for carry and China growth have eased for now."

AUD/USD levels

With spot trading at 0.7621, we can see next resistance ahead at 0.7626 (Daily High), 0.7637 (Hourly 20 EMA), 0.7640 (Daily Classic PP), 0.7651 (Hourly 200 SMA) and 0.7653 (Weekly Classic PP). Support below can be found at 0.7619 (Daily Open), 0.7619 (Weekly Low), 0.7616 (Daily 20 SMA), 0.7608 (Yesterday's Low) and 0.7605 (Daily Low).

In the 4 hours chart, Valeria Bednarik, chief analysts at FXStreet, noted that technical indicators have "crossed their mid-lines with strong bearish slopes that persist ahead of the Asian opening, while the 20 SMA has turned lower around 0.7650, reinforcing the static resistance region. A break below 0.7600 will likely see the pair extend its decline this Wednesday, although longer term buyers await around 0.7450."