Early Friday, the Australian Bureau of Statistics (ABS) released the preliminary reading for the December month Retail Sales data from Australia.
According to the (ABS), Retail Sales dropped -4.2%, missing the -1.5% forecast, with the previous reading at 7.1%.
The data released marked the heaviest fall since June 2020.
Further, Australia’s Commonwealth Bank initial Manufacturing, Services and Composite PMIs for December suggested Manufacturing PMI rose to 57.2 versus 55.9 forecasts while Services PMI eased from 57.4 expected to 55.8.
The Composite PMI gained from 55.6 to 56.00.
From the recent break of US$0.7725 should keep the bearish evaluation to a slow decline towards a potential target of US$0.7655-60, then to US$0.7570-75. Reassess from there.
Conversely, a close above US$0.7795, (New York close), would negate the downside call and give a short-term neutral view.