AUD/USD drops and recovers on Retail Sales miss

AUD/USD dropped initially to the downside with the Retail Sales from Australia disappointing 0.3% vs 0.4% expected. However, the downside was limited on this data given the current climate as with a better bid Aussie which may offer buying on dips opportunities while markets are more forward looking currently with sentiment for a on hold RBA for the time being since the latest interest rate cut down to 2%.

Markets maybe more inclined to see the outcome of the Nonfarm Payrolls at the end of the week on relatively benign misses such as this, while the new homes sales data that came in strong at 4.4% from Australia supporting the Aussie to some extent

From here,given the bullish theme of late, a close above 0.8068 would initiate a deeper recovery to the 0.8247/38.2% retracement of the move down from September 2014 and the 0.8295 2015 peak, as explained by Karen Jones, chief analyst at Commerzbank.

Source : Fxstreet