AUD/USD drops on weak retail sales and building permits data

AUD/USD declined 0.2% to 0.6485 in early Asian trading as disappointing Australian economic data weighed on the currency. Retail sales data came in below expectations, signaling weakening consumer demand, while building permits also disappointed, suggesting a cooling construction sector. The weak data reinforces market expectations that the Reserve Bank of Australia may pause its tightening cycle, putting additional pressure on the Aussie dollar. Technical analysis shows AUD/USD breaking below the 0.6500 psychological support level, with next support at 0.6470 (50-day moving average). Resistance now sits at 0.6520. The combination of soft domestic data and a relatively stronger US dollar continues to pressure the pair lower. Traders are awaiting next week's RBA meeting minutes for further clarity on monetary policy direction, which could determine whether the current downtrend accelerates.