Australia retail sales rose 0.6%, AUD extending near term recovery

Australia retail sales rose 0.6% mom in February, beating expectation of 0.3%. But building approvals dropped -6.2% mom, worse than expectation of 54.5.

AUD is responding well to easing of risk aversion. But it’s not totally out of the dark yet.

For example, AUD/JPY 6H action bias just turned positive, indicating the the recovery is gaining momentum.

However, D action bias is just neutral.

W action bias is negative through and through.

Hence, for the near term, there could be more upside in the cross as recovery extends. But upside potential would be limited as it’s a corrective move. Or, until there is firm signal of trend reversal.