FxWirePro: AUD/USD pulls back slightly after soft Australian retail sales data

•  AUD/USD pulled back modestly on Wednesday after retail sales data showed little growth for a fourth consecutive month..

• Australian retail sales showed minimal growth for the fourth consecutive month in May, as increased spending on clothing was offset by an unusual decline in food sales—strengthening expectations for another interest rate cut next week.

• Australian retail sales edged up 0.2% in May, following a flat reading in April, according to ABS data released Wednesday.

• The data undermined optimism that lower borrowing costs and stronger incomes would drive a rebound in household demand, pressuring the RBA to cut its consumption outlook once more.

• With economic growth weak and inflation easing, investors now see a 96% chance of a quarter-point RBA rate cut next Tuesday from the current 3.85%.

•  Immediate resistance is located at 0.6643(Nov 4th high), any close above will push the pair towards 0.6679(23.6%fib).

•  Support is seen at 0.6557(38.2%fib) and break below could take the pair towards 0.6517(SMA 20).

 Recommendation: Good to buy  around 0.6570 with stop loss of 0.6490 and target price of 0.6670