FxWirePro: AUD/USD opens the week on a bearish note, poor Aussie data join China Covid woes to weigh on the antipodean

Chart - Courtesy Trading View 

AUD/USD was trading 1.11% lower on the day at 0.6676 at around 06:15 GMT.

The pair has opened the week on a bearish note, is extending the bearish gap-open.

Poor Australia’s Retail Sales join China Covid woes and grim comments from Governor Philip Lowe to drag the pair lower.

Australia’s Retail Sales marked the first contraction of 2022, printed at 0.2% MoM for October versus the 0.4% expected expansion and 0.6% previous increase.

Coronavirus fears escalated in China, amid record-high daily infections and protests over the government’s Zero-Covid policy. 

Further, Reserve Bank of Australia (RBA) Governor Philip Lowe cited the wage-spiral risks and the housing market fears to exert more downside pressure on the pair.

Focus will be on Australia's recently initiated monthly inflation data, due Wednesday along with RBA Governor Philip Lowe and Fed Chair Jerome Powell comments.

Australian monthly Consumer Price Index (CPI) is seen higher at 7.5% vs. the prior release of 7.3%. 

Friday’s US employment report for November is also crucial and will be closely watched for further directional bias.

AUD/USD price action has slipped below 200H MA. The pair finds major support at daily cloud, break below cloud top will see more weakness.