Above-forecast Aussie retail sales push AUD/USD above 0.72

• Aussie prints session highs above 0.72 following a better-than-expected Aussie retail sales data release.
• The USD/CNH pair (offshore yuan exchange rate) is showing signs of life. That could be capping the upside in the AUD/USD pair.

The AUD/USD pair jumped to a session high of 0.7204 following the release of an upbeat Aussie retail sales data.

The consumption, as represented by retail sales, rose 0.4 percent month-on-month in November, beating the estimated print of 0.3 percent, according to Australian Bureau of Statistics (ABS). In annualized terms, the retail sales rose 3.6 percent.

Despite the above-forecast print, the AUD managed to add only 12 pips and is struggling to find acceptance above the psychological level of 0.72, possibly due to the minor bounce in the USD/CNH pair. Currently, that pair is trading 6.79, having clocked a low of 6.77 yesterday.  

Moreover, the offshore Chinese yuan – the anchor for FX markets – is looking overbought on the short duration technical charts. As a result, the USD/CNH pair could see a stronger recovery rally during the day ahead, helping the dollar regain some poise across the board. 

AUD/USD Technical Levels