The Australian dollar rocketed higher on Monday and was trading 1% stronger during the London session, with the AUDUSD pair hovering around 0.7630.
Australian retail sales rose more than expected on the monthly basis and printed 0.4% following 0.0% previously and this was also higher than 0.3% predicted by analysts. Furthermore, company operating profits for the previous quarter also surprised on the upside and jumped from 2.8% to 5.9%. The ANZ job advertisement indicator improved notably to 1.5% from -0.3% before that. The Aussie was bought after these numbers.
Later in the day, US factory orders are due and should post a big decline month-on-month, which might be negative for the US Dollar.
The AUDUSD pair is now testing the critical support in the 0.7650 area, where the strong bearish trend line is located, along with previous lows. There could be strong selling offers located here. If not held, the bearish trend would be cancelled and the Aussie may rise toward the 0.77 level in the initial reaction.
On the downside, the support is seen at 0.76 and while the Aussie trades above, the short-term outlook seems bullish for the AUDUSD pair. In all cases we strongly recommend to have rigorous money and risk management.
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