AUD/USD holding near 0.77 ahead of Aussie Retail Sales

• The Aussie faces Retail Sales early today following a risk-on swing from Tuesday.
• Geopolitical tensions continue to limit risk appetite potential.

The AUD/USD is lacking conviction heading into the Tokyo markets, trading into 0.7680 ahead of the Aussie Retail Sales figures at 01:30 GMT.

The AUD has struggled to find a foothold higher against the USD, and the Aussie is trading near four-month lows as the interest rate differential between the two currencies is set to widen further, with the Reserve Bank of Australia (RBA) holding steady on rates and set to do so for the foreseeable future, and the US Fed on pace to lift key interest rates another two or three times in 2018.

The current trade war environment between the US and China is doing little to spur risk appetite in the Asia markets, with the US' announcement of a 1,300-item list of further duties to be imposed on Chinese goods drawing an immediate reaction from the Chinese, and the possibility of an all-out trade war continues to slowly increase.

AUD/USD Levels to watch

The Aussie is in a slight holding pattern ahead of the Tokyo market open and Retail Sales figures, and as FXStreet's own Ross Burland noted, "while MACDs and Slow Stochastics suggest a low may be close, daily closes below 76.4 Fibo at 0.7651 (recent low) and a break below 0.7643 could set off a test of the 0.75 handle. On a break higher and through the rising weekly support line and a 200-D SMA just above 0.78 the figure,  0.7910 is open."