AUD/USD drops 30 pips back under the 200-D SMA on retail sales miss

• AUD/USD drops on the retail sales miss.
• Monthly retail sales, for September, arrived, at 0.0% m/m, another miss vs the expected 0.4%

AUD/USD has dropped 30 pips and fallen back below the 200-D SMA at 0.7693. There is room to fall further where the 100 hourly SMA is located and below there lies 0.7640 where the end of October month flows sent Aussie on a rally on a bounce off the 0.7700 supply.

Australia retail sales growth stalls in September

Meanwhile, the greenback has been on the backfoot due to the US political announcements in the US session while we await the nonfarm payrolls showdown tonight. Before then, Aussie traders will await the Oct Caixin services PMI data from China.

As a recap, Valeria Bednarik, chief analyst at FXStreet noted that the better-than-expected Australian data released yesterday helped to send the AUD/USD pair to its highest for the week overnight, alongside with dollar's soft tone after Wall Street's opening:

"The Australian trade balance for September posted a  surplus of 1.745M, doubling previous month reading and well above the 1.2M expected, while exports grew by 3.0% in the same month, although imports remained flat. Building permits in the country rose by 1.5% in September when compared to August 0.1% advance, falling yearly basis by 2.4% after plummeting 15.1% previously."

Asian FX Outlook: A frenetic week ends with US NFP

AUD/USD levels

"Last weeks week’s low at 0.7625 is exposed. Failure here targets the 2016-2017 uptrend line at .7465," argued analysts at Commerzbank, adding, "rallies will find initial resistance at the 20-day ma at 0.7770. Intraday rallies are indicated to terminate circa 0.7720/50. Key near-term resistance remains mid-October high at .7896 – its stays immediately negative below here."