FxWirePro: Aussie dumped on unexpected Australia retail sales miss, stay short AUD/USD

• Australia retail sales unexpectedly dropped 0.1% m/m in March, compared to the 0.3% expected.
   
• Aussie dumped across the board, AUD/USD hits fresh 4-month lows of 0.7362.
   
• Traders ignore Monday's NAB business conditions and confidence indices which printed at multi-year highs.
   
• Housing market concerns and the weakness in the commodity prices likely to keep downside pressure.
   
• Focus now shifts to Australia budget presentation later in the day. An expansionary fiscal policy could provide some respite to the AUD.
   
• Technical studies are bearish. We see scope for further downside.
   
• The pair has broken below 61.8% Fib retrace of 0.7160 to 0.7749 rally and is on track to test 78.6% Fib at 0.7286.

Support levels - 0.7311 (Nov 21, 2016 low), 0.7286 (78.6% Fib & trendline), 0.72

Resistance levels - 0.7385 (61.8% Fib of 0.7160 to 0.7749 rise at 0.7385), 0.74 (5-DMA), 0.7430 (Dec 15 2016 & May 4 highs)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-consolidates-Wednesdays-slump-finds-respite-from-Governor-Lowess-hawkish-comments-680056) has hit TP1&2.

Recommendation: Book partial profits at lows. Lower trailing stop to 0.7400. Stay short for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -157.925 (Bearish), while Hourly USD Spot Index was at 8.77746 (Neutral) at 0210 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.