FX News - May 14 2014: Weak US Retail Sales Drag Down USD Vs AUD, JPY

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Weak retail sales by the United States in April dragged down the greenback against the aussie in yesterday’s trading. Its effects continue to be felt in today’s Asian session. The retail sales data went up only by 0.1 per cent over a one-month period, which was lower than the 0.4 per cent growth expected, and the previous growth by 1.5 per cent. Meanwhile, retail sales ex autos went flat during the same period, where a 0.6 per cent growth was expected, and the previous period was up by 1.0 per cent.

The news helped lift the AUD/USD pair late in yesterday’s European session, where it peaked at 0.9382. It eventually slid down during the US session, before going on a steady climb again until today’s Asian session. It is currently trading at 0.9382, with initial resistance seen at 0.9371, followed by 0.9395. Meanwhile, initial support is at 0.9320, followed by 0.9296.

As for the USD/JPY, the pair has been quite resilient the past few days as it held on to the 102.00 area. The pair slid sharply yesterday due to the weak US retail sales data, which brought it down from around 102.35, to a low of 102.06. However, it managed to get back up as the day progressed. It opened at a slightly lower level in today’s Asian session at 102.23, and has so far hovered within a very narrow range between 102.15 and 102.20. It is currently trading at 102.16, with initial resistance seen at 102.48, followed by 102.74. Meanwhile, initial support is at 102.16, followed by 101.90.

By FX Strategy Team, Published on 14th of May 2014
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