Global macro overview for 09/05/2017:
The Australian Bureau of Statistics reported the Retail Sales declined -0.1% in March for a second consecutive month. Market participants expected a 0.3% increase after -0.2% decline a month ago, so the disappointment led to a sell-off of the Australian Dollar across the board. Among retail sectors, food retailing increased 0.1%, while household goods and clothing sales fell. The question remains, whether this might be a beginning of a new downside trend or this is just a seasonal corrective decline in sales. Like many advanced economies, Australia relies heavily on consumer spending, so consumption is very important part and the main driver of the domestic recovery.
Let's now take a look at the AUD/JPY technical picture on the H4 timeframe. The market filled the weekend gap but is still struggling to break out above the technical resistance at the level of 84.52. The momentum remains positive and there is still no sign of the overbought market, so the attempt to break out above the 84.52 resistance is still possible. The next important support is 50% Fibo at the level of 82.42.
