FxWirePro: AUD/USD Daily Outlook

Chart - Courtesy Trading View 

AUD/USD was trading 0.75% lower on the day at 0.6885 at around 05:30 GMT, outlook bearish.

The pair has erased most of the previous session's gains and is on track for further downside.

China's April retail sales plunged 11.1% on the year, almost twice the drop forecast, while industrial output dropped 2.9%, also missing analysts' expectations for a slight increase.

Shockingly weak data from China underlined the deep damage lockdowns were doing to the economy.

Meanwhile, “China’s Stats Bureau Spokesman expects economic operations to improve in May,” cushions downside in the pair.

Sky-high inflation and rising interest rates saw U.S. consumer confidence sink to an 11-year low in early May.

The stakes remain high for April retail sales due on Tuesday. Monthly US Retail Sales are seen at 0.7%, higher than the previous print of 0.5%. 

Technical indicators remain supportive of downside. Potential 'Death Cross' (bearish 50-DMA crossover on 200-DMA) adds to the downside bias.

Major Support Levels: 

S1: 0.6828 (Yearly low)

S2: 0.6778 (Lower BB)

Major Resistance Levels: 

R1: 0.6910 (5-DMA)

R2: 0.7009 (200H MA)

Summary: AUD/USD trades with a bearish bias. Scope for further downside. Next major support lies at 0.6828 (yearly low till date).