AUD/USD recovers back above 0.7700 handle on dismal US retail sales

A broad based US Dollar sell-off across the board helped the AUD/USD pair to erase all of its early losses and move back above 0.7700 to currently trade at session high near 0.7720-15 band.

Downbeat retail sales data for the month of July now seems to have dashed hopes of an eventual Fed rate-hike in 2016. Diminishing prospects of Fed action is weighing heavily on the greenback and helping the pair to shrug-off weaker Chinese economic data, released earlier during Asian session on Friday.

Next on tap would be the preliminary release of UoM Consumer Sentiment index, which could provide some respite for the US Dollar. 

How strong has the move been?

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish. Currently RSI is at 74.88, up from the last hourly print at 38.35, with ADX at 25.63, up from its previous close at 20.18.

Daily RSI sits at 63.50, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.7705, up from the last close at 0.7646 and climbing. Over the past 20 days, the exponential average closing price is 0.7592 and trending higher.

Levels to be considered

We can see next resistance ahead at 0.7742 (Daily Classic R1), 0.7760 (Yesterday's High), 0.7768 (Weekly Classic R2) and 0.7786 (Daily Classic R2). Support below can be found at 0.7702 (Monthly High), 0.7702 (Weekly High), 0.7699 (Daily Open) and 0.7694 (Weekly Classic R1).