FxWirePro: AUD/USD erases early gains after downbeat Australia Retail Sales

AUD/USD chart - Trading View 

AUD/USD has erased early gains, slips lower from session highs at 0.7522 and was trading at 0.7488 at around 04:30 GMT.

Aussie depressed, losses ground across the board after downbeat Australia Retail Sales data.

Retail Sales released by the Australian Bureau of Statistics shows preliminary Aussie Retail Sales for May drops to 0.1% month-on-month, below 0.7% market consensus and 1.1% prior.

Poor data justifies the market fears of the negative economic impact of Victoria’s snap lockdown, keeping traders wary. 

Also, weighing on the antipodeans was the People’s Bank of China’s (PBOC) decision to keep the benchmark interest rate unchanged near 3.85%.

The PBoC left the key rates unchanged once again despite recently suggesting the pause in the further easy monetary policy, denting market sentiment.

Focus now on the Fedspeak and Chicago Fed National Activity Index for May for fresh impulse. A hawkish tone from Fed policymakers could boost the US dollar, dragging the pair lower.

Technical bias for the pair is bearish. Price action is consolidating break below 200-DMA. Scope for further downside. Next major bear target lies at 61.8% Fib at 0.7379.