AUD/USD eyes a break below 0.7500, focus shifts to Australia’s retail sales

• USD extends post-NFP rally, knocks-off Aussie closer to 0.75 handle.
• Eyes on Australian retail sales and Chinese trade balance for fresh impetus.

The AUD/USD pair is seen accelerating its Asian decline heading into Europe, as the bid tone around the US dollar keeps growing bigger amid upbeat US employment data released last Friday.

AUD/USD looks to test Friday’s low at 0.7492

The post-NFP rally in the US dollar regains momentum across the board, as the European traders hit their desks and react positively to the US jobs report, with prospects of a June Fed rate hike well in place. The USD index rises +0.15% to daily tops of 92.71, on its way to test the 93 handle.

On the AUD-side of the equation, a set of mixed Australian NAB business confidence and job ads data continues to undermine the sentiment around the Aussie. Meanwhile, the AUD bulls prefer to remain on the back seat ahead of the Australian annual budget release due tomorrow at 0930 GMT.

However, the spot could find fresh buyers near 0.7490-0.7500 region amid a rally in oil prices, which usually remains supportive of the commodity currency. WTI futures are seen rallying 1% to trade near $ 70.50 levels on the back of rising concerns over the US-Iran nuclear deal.

Attention now turns towards the Australian retail sales and Chinese trade figures due tomorrow in the Asian session, as the US docket remains data-empty.

AUD/USD Technical Levels

According to Jim Langlands at FX Charts, “If we do see a near-term squeeze higher, minor resistance will be seen at 0.7550/60 and then again at 0.7575, ahead of the 26 April high at 0.7588 and 0.7600/05 although this looks rather doubtful to be seen again today selling rallies is preferred. The longer-term charts remain heavy and would seem to have further losses to come in the days ahead and a break of 0.7470 would then head towards minor support levels taking us down to 0.7400, although there really is not too much to hold it up ahead of the 1 June 2017 low at 0.7371.”