The Australian dollar inched higher after a smaller contraction in August’s retail sales.
The pair has found strong support at 0.7220. Three consecutive tests are an indication of solid interest in keeping the Aussie afloat.
0.7320 is the first resistance ahead. Its breach may shake the sellers out and trigger a rebound to 0.7410.
Otherwise, a fall below the said support would cause a deeper correction to the critical level of 0.7105. Erasing all of the gains from late August would seriously dent buyers’ optimism for a rally.
