AUD/USD: can't sustain the upside, but bulls persist

AUD/USD has recovered from the sell-off and option expiry interest levels at the mid point of the handle that took the pair down to 0.72, but the US shift had seen the Aussie rally back to test the 20 sma on the 1hr sticks at 0.7230 where spot consolidates currently. 

The downside has been playing out, despite a continuation of not bad/up beat data overnight that registered the Australian Retail Sales for April as +0.2% m/m vs the expected +0.3% while the Australian April trade balance showed a deficit of 1.579mln vs an expected deficit 2100mln.

AUD/USD levels

Analysts at Commerzbank explained that without a corrective rebound, they favour losses to the 78.6% retracement at 0.7044. "This remains the last defense for the .6828 January low. Near term rallies are expected to remain contained by 0.7410/30, the 38.2% retracement."