AUD/USD: headed back to 0.7330? - BBH

Analysts at Brown Brothers Harriman explained that the Australian dollar looked good until May 25, when it failed to make a new high for the week and then reversed lower.  

Key Quotes:

"There was follow through selling ahead of the weekend when the Aussie recorded new lows for the week. It held $0.7420, which corresponds to the 50% retracement objective of the rally from the May 9 low near $0.7330, but failed to overcome offers in front of $0.7460. The 61.8% retracement is found at $0.7400. "

"If the $0.7520 area represents a small double top, a convincing break (close basis?) of $0.7445, could point to a return to that low from earlier in May."

"The technical indicators are mixed. Next week's data releases are likely to be constructive, with April building approvals and retail sales picking up after a soft March."

"Private sector credit may slow, which may be desirable. On the other hand, capital expenditures probably increased in Q1, snapping a four-quarter slide."