FxWirePro: AUD/USD breaks 3-day winning streak, weak Aussie data and US dollar rebound weigh

AUD/USD chart - Trading View 

AUD/USD was trading 0.25% lower on the day at 0.7743 at around 03:40 GMT, pauses 3-day winning streak.

Weaker-than-expected Aussie Retail Sales data, broad-based US dollar rebound amid the downbeat market mood weighing on the aussie.

The preliminary readings of Australia’s Retail Sales released early Friday showed a drop to -4.2%, below +7.1% prior. Data marked the heaviest fall since June 2020.

Further, Australia’s Commonwealth Bank initial Manufacturing, Services and Composite PMIs for December suggested Manufacturing PMI rose to 57.2 versus 55.9 forecasts while Services PMI eased from 57.4 expected to 55.8. The Composite PMI gained from 55.6 to 56.00.

Market sentiment remains sour as virus fears spread amid policymakers in the US, Europe, the UK and Japan, keeping risk assets subdued.

Technical bias for the pair remains bullish. However, break below 21-EMA could change near-term bias. Resumption of upside will see test of 88.6% Fib at 0.7836.