Investing.com - The Aussie dollar fell against its U.S. counterpart early Monday after weaker-than-expected retail sales numbers took the wind out of the currency's recent strengthening trend.
AUD/USD hit 1.0729 in Asian trading on Monday, down 0.39% and up from a session low of 1.0711 and off from a high of 1.0775.
The pair sought to test support levels at 1.0672, Friday's low, and resistance at 1.0794, Friday's high.
The Australian Bureau of Statistics reported that Australian retail turnover fell 0.1% in December of 2011 following a rise of 0.1% in November of 2011.
The news halted the Aussie dollar's recent strengthening trend, as market sentiment began to build early in the session that interest-rate cuts may be in store for the country's economy.
"The market has got a high chance of a rate cut priced in for tomorrow and this number isn’t going to change that," said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, referring to retail sales data, according to Bloomberg.
The Reserve Bank of Australia is due to address interest rates later Monday.
"If they do deliver a cut, the Aussie might fall, but the major push to the Aussie from the RBA is going to come from their statement."
The Aussie dollar, meanwhile, was down against the yen and up against its New Zealand counterpart, with AUD/JPY falling 0.31% to 82.24 and AUD/NZD up 0.07% at 1.2899.
On Monday, the Reserve Bank of Australia will decide whether or not to move on interest rates, while later in the day, New Zealand is to publish official data on labor cost inflation, a key indicator of consumer inflation.
In Europe, the Sentix report on investor confidence, a key gauge of economic health, will hit the wire, while Germany is to publish official data on factory orders.
Also Monday, Canada is to produce a report on the Ivey purchasing managers’ index, a leading indicator of economic health.
AUD/USD hit 1.0729 in Asian trading on Monday, down 0.39% and up from a session low of 1.0711 and off from a high of 1.0775.
The pair sought to test support levels at 1.0672, Friday's low, and resistance at 1.0794, Friday's high.
The Australian Bureau of Statistics reported that Australian retail turnover fell 0.1% in December of 2011 following a rise of 0.1% in November of 2011.
The news halted the Aussie dollar's recent strengthening trend, as market sentiment began to build early in the session that interest-rate cuts may be in store for the country's economy.
"The market has got a high chance of a rate cut priced in for tomorrow and this number isn’t going to change that," said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, referring to retail sales data, according to Bloomberg.
The Reserve Bank of Australia is due to address interest rates later Monday.
"If they do deliver a cut, the Aussie might fall, but the major push to the Aussie from the RBA is going to come from their statement."
The Aussie dollar, meanwhile, was down against the yen and up against its New Zealand counterpart, with AUD/JPY falling 0.31% to 82.24 and AUD/NZD up 0.07% at 1.2899.
On Monday, the Reserve Bank of Australia will decide whether or not to move on interest rates, while later in the day, New Zealand is to publish official data on labor cost inflation, a key indicator of consumer inflation.
In Europe, the Sentix report on investor confidence, a key gauge of economic health, will hit the wire, while Germany is to publish official data on factory orders.
Also Monday, Canada is to produce a report on the Ivey purchasing managers’ index, a leading indicator of economic health.