AUD/USD dips below 0.75 dismal Aussie retail sales release

• AUD/USD turns red, dips below 0.75
• Aussie March retail sales missed estimates by a big margin.

Consumption as represented by retail sales stalled in March as opposed to Reuters estimate of a 0.3 percent month-on-month growth, according to Australian Bureau of Statistics (ABS).

The dismal data has not gone down well with the markets. The AUD/USD pair is down 0.15 percent and looks set to take out the psychological support of 0.75.

The data-led decline in the AUD/USD indicates the minor corrective rally from the May 1 low of 0.7473 has ended at 0.7561 and the bears could push the pair well below the recent low (0.7473) as investors will likely scale back the RBA tightening expectations in response to weak retail sales release.

As of writing, the 10-year AU government bond yields 20 basis points less than its US counterpart. The spread could drop further in the AUD-negative manner.  

AUD/USD Technical Levels

The spot was last seen trading at 0.7495. A break below 0.7473 (recent low) would expose support at 0.7328 (May 2017 low) and 0.73 (zero levels). On the higher side, a convincing move above 0.7561 (May 4 high) would allow the corrective rally to 0.7643 (March 29 low) and 0.7652 (April 9 low).