- Aussie Dollar looks like made a top against the US Dollar, and may continue to trade down.
- There is a descending channel pattern formed on the hourly chart of the AUDUSD pair, which may continue to act as a catalyst.
- Australian Retail Sales released by the Australian Bureau of Statistics posted no change for Feb 2016, whereas the market was aligned for a rise of 0.4%.
- Moreover, the TD Securities Inflation released by The University of Melbourne – Faculty of Economics and Commerce posted no change as well for March 2016.
The Aussie dollar started this week on a negative note against the US Dollar and moved down. There is a descending channel pattern formed on the hourly chart of the AUDUSD pair, which is acting as a hurdle and taking the pair down.
The pair is currently trading below the 100 and 50 simple moving average. So, if the pair corrects higher, then the 100 SMA can act as a sell area.
On the downside, the 200 SMA may be seen as a short-term support area for the AUDUSD pair.
Australian Retail Sales
Earlier during the Asian session, the Australian Retail Sales, which presents a quantitative analysis of goods sold by retailers is based on a sampling of retail stores was released by the Australian Bureau of Statistics. The market was expecting the sale to rise by 0.4% in Feb 2016. However, the outcome was disappointing, as there was no change in the Australian Retail Sales.
The report highlighted that the “seasonally adjusted estimate was relatively unchanged (0.0%) in February 2016. This follows a rise of 0.3% in January 2016 and a relatively unchanged (0.0%) December 2015”.
Overall, the trend looks bearish for the AUD/USD pair, which may continue to remain in the short term.