AUD/USD drops to the fresh low of the day, during the early Tuesday. In doing so, the aussie pair ignores the upbeat prints of Australia’s November month Retail Sales figures while taking clues from the mild risk-off mood amid an easy session.

As per the Preliminary readings, Australia’s Retail Sales jumped 7.0% MoM versus 1.4% during November. With this, the retail sales grew for the third consecutive month while also marking the biggest rise since early July.

South Australia, which saw a short lockdown within November, had a flat result. Most South Australian retail industries saw falls as a result of temporary store closures, although these falls were offset by a rise in supermarket sales.”

By industry, household goods retailing (13 per cent) led the rises, as Black Friday sales combined with major product releases in the electrical subgroup, led to a spike in turnover across the country.  The rises in Victoria, and Black Friday purchases, also led to large national monthly rises in clothing, footwear and personal accessories, other retailing, and department stores. 

On the other hand, US lawmakers are in the final stages of approving a Covid aid bill that will inject $900 billion of relief funds into the economy through direct stimulus payments to Americans, supplemental unemployment benefits, Covid vaccine distribution measures, and other virus-related health measures. Progress on Capitol Hill wasn’t reflected on Wall Street, however, with the S&P 500 and Nasdaq Composite falling 0.39% and 0.11%, respectively.

On Tuesday, GDP of US for the third quarter third reading is expected to remain at +33.1% on quarter, in line with the third quarter second reading. The Conference Board’s Consumer Confidence Index for December is expected to rise to 97.0 on month, from 96.1 in November. Finally, Existing Homes Sales for November are expected to fall to 6.70 million on month, from 6.85 million in October.

AUD/USD 4 Hour Chart:

Support: 0.7498 (S1), 0.7408 (S2), 0.7353 (S3).

Resistance: 0.7642 (R1), 0.7696 (R2), 0.7786 (R3).

AUD/USD fails to cheer the upbeat data. Traders will wait for the formal announcement of the US COVID-19 aid package for immediate direction. In the meantime we expect a bearish trend for AUD/USD.