AUD/USD (current price: 0.7638)
The Australian Dollar is back near 0.76 compared to the USD, after rising above 0.77 for the first time in almost a year last week. The currency is sharply lower this morning as Retail Sales came in unchanged for March, even though analysts were expecting a monthly rise of 0.4%. The surprisingly strong Building Permits number looks to be not enough to lift the Aussie that is also under pressure because of declining commodity prices again. The pair has risen more the 10% since hitting a low near 0.68 in January, but it looks ready for a deeper correction following the strong move higher.
Our assessment: AUD/USD might be headed to the support level around 0.745 that coincides with the rising short-term trend-line. Momentum indicators signal that the pair has room to correct until it gets back to neutral readings.
