FXStreet (Guatemala) - AUD/USD sold off heavily on the release of the miss in retail sales for December and was then rescued on a conflicting statement on monetary policy. AUD/USD met highs at the 200 sma on the five minute sticks at 0.7211 and plummeted to 0.7176 the low so far on the same time frames before recovering back to the 0.72 handle. The data is being monitored by the RBA who have started to be more vigilant in respect to global negative headwinds for the Australian economy and will monitor data such as this ahead of their subsequent RBA meetings. A continuation of such lack luster activity in the consumer space will not bode well for the inflation outlook and while the current CPI's are withing the RBA's preferred band, they are at the bottom of that bracket and over time ahead the Central Bank could find themselves looking at needing to cut interest rates. However, for the time being as per statement, the RBA are not leaning on a dovish foot as of yet and only noted that soft inflation could equal further easing. Jobs growth is seen strong enough to push jobless rate lower and the RBA sees reasonable prospects for continued growth in the economy. Now, the key event will be the nonfarm payrolls tomorrow. For live coverage you can watch here. Nonfarm Payrolls: Expect another round of dollar sell-off AUD/USD was on track for a full retracement of the 2016 downtrend above the convergence of the 100 and 55 dma at 0.7143 today having scored a high of 0.7242 and almost a full cent higher. However, now having lost the 0.72 handle, the momentum is lacking. To the downside, below recent lows, the pivot is at 0.7124 ahead of S1 at 0.7058, S2 at 0.6936 and S3 at 0.6870. For more information, read our latest forex news.