AUD/USD drops below 0.7530 on strong USD

• The Chinese Retail sales and Industrial Production data are scheduled at 2:00 GMT, can affect AUD.
• US Retail Sales on Tuesday at 12:30 GMT can add further pressure to AUD/USD if it comes better-than-expected. 

The AUD/USD is trading at around 0.7527 down 0.20% on Monday.

In the Asian and European sessions, the AUD/USD pair traded mainly sideways coiling around the 0.7550 level. After the European forex session, the greenback rallied across the board and the Aussie fell about 20 pips and is now consolidating in the 0.7530 area below its 100-period simple moving average on the 4-hour chart.

The next market-moving event for the AUD is the monthly Chinese data dump with Retail Sales, Industrial Production and Fixed Asset Investment for March as well as Foreign Direct Investment for April, all scheduled for Tuesday at 2:00 GMT.

Looking further, the US Retail Sales on Tuesday at 12:30 GMT is also expected to bring volatility in the market and a better-than-expected reading should reinforce the USD.

The US Dollar Index (DXY) started Monday’s trading on the back foot but then the Index erased its losses and is now trading above the 92.55 level at the time of writing.

Meanwhile gold is also ticking down adding pressure to the commodity-linked currency.

AUD/USD 4-hour chart 

The main trend is bearish and support is seen at the 0.7500 handle and close to the 50-period simple moving average (SMA) on the 4-hour followed by 0.7440 previous demand level. To the upside, resistances are the recent swing high at 0.7567 and the 0.7640 previous supply level. The Aussie is trading below its 200 and 100-period SMA suggesting downward momentum.