AUD/USD weighed down by disappointing retail sales, flirting with 0.76 handle

The AUD/USD pair remained under some selling pressure for the third consecutive day on Monday and has now dropped below the 0.7600 handle to four day low.

Spot extended last week's reversal move from the 0.7680 region, and a subsequent break below 50-day SMA support, after the Australian retail sales unexpectedly dropped during the month of February. The disappointing release of Australian retail sales data added on to weekend release of lower-than-expected Chinese manufacturing PMI print for March and aggravated the selling pressure around the major. 

   •  Australia: Feb retail sales dips 0.1% as discretionary spend falls - Westpac

Adding to this, a mildly weaker sentiment surrounding commodity space further dented demand for commodity-linked currencies - like the Aussie, and collaborated to the pair's offered tone. 

Further downslide, however, remained limited amid lack of any follow through greenback recovery momentum, with the key US Dollar Index entering a consolidation phase below mid-100.00s. 

Focus now shifts to the US economic docket, featuring the release of ISM manufacturing PMI and would be looked upon for some short-term trading impetus ahead of speeches by various FOMC members - New York Fed President William Dudley, Philadelphia Fed President Patrick Harker and Richmond Fed President Jeffrey Lacker.

Technical levels to watch

Immediate support is seen near 0.7585 (March 28 low), below which the pair is likely to aim towards testing the very important 200-day SMA support near mid-0.7500s before eventually dropping back towards the key 0.75 psychological mark.

On the upside, any recovery move above 0.7615-20 immediate resistance might now confront resistance at 50-day SMA near 0.7635 region, which if cleared might trigger a minor short-covering rally back towards 0.7665-70 resistance area.