AUD/USD falls on weak retail sales, US court reinstates tariffs

AUD/USD declined 0.6% to 0.6520 following disappointing Australian retail sales data and renewed trade concerns after a US court decision. Australian retail sales rose just 0.1% month-over-month in April, significantly below the expected 0.3% increase, suggesting weakening consumer demand. The Australian dollar faced additional pressure after a US court reinstated certain tariffs, raising concerns about global trade dynamics and commodity demand. As a commodity-linked currency, the AUD remains vulnerable to shifts in global trade sentiment and China's economic outlook. Technical analysis shows AUD/USD breaking below the key 0.6550 support level, with next support at 0.6500 (psychological level). Resistance now sits at 0.6550 (former support turned resistance). The combination of domestic economic weakness and external trade headwinds suggests continued pressure on the Australian dollar in the near term.