AUDUSD is unable to break above 0.6750 Despite positive Australian Retail Sales data.

In the Asian session, the AUDUSD pair is battling to break above the 0.6750 resistance level. The Australian asset’s recovery move from round-level support of 0.6700 lacks vigor since the risk-off mentality has not yet subsided. After establishing a cushion around 104.30, the US Dollar Index (DXY) has tried a rebound. Nonetheless, a sideways performance is largely expected following a vertical decline and ahead of the release of the US ISM Manufacturing PMI data.

After a slight comeback on Monday, S&P500 futures have added further gains. US 10-year Treasury rates are fighting to stay over 3.92%. Despite the announcement of optimistic monthly Retail Sales (Jan) figures, the Australian Dollar has failed to attract meaningful bids.

The Australian Bureau of Statistics released monthly economic figures at 1.9%, which was higher than the 1.5% estimate. Retail sales fell by 3.9% in December.

Australian dollar(AUDUSD) has produced a Hammer candlestick pattern approaching the critical support level of 0.6710.

The AUDUSD has produced a Hammer candlestick pattern around the critical support level of 0.6710, which was charted from the December 29 low. The creation of a Hammer candlestick suggests the arrival of responding buyers who see the asset as a “value purchase” now after a massive drop. It is worth noticing that the asset has deviated significantly from its five-period Exponential Moving Average (EMA) of 0.6768. Very short-term EMAs are often sticky with one another. Price reversion to the EMA occurs when there is divergence. As a result, a retreat movement cannot be ruled out.

The Relative Strength Index (RSI) (14) has entered the negative territory. of 20.00-40.00, indicating a downward trend.

If the Australian asset falls below Monday’s low of roughly 0.6700, US Dollar bulls will drive it towards the December 7 bottom of 0.6668, followed by the December 20 low of 0.6629.A break over the February 23 high of 0.6842, on the other hand, will propel the asset towards the February 21 high of 0.6920. A break above the latter will expose the major for further gains towards the psychological resistance level of 0.7000.