The Australian dollar fell back after a drop in July’s retail sales numbers.

A close above 0.7270 has forced sellers to cover their bets. The pair is recovering towards the 30-day moving average on the daily chart which coincides with the support-turned-resistance at 0.7320.

However, the rebound is likely to be choppy. After a double top in the overbought area, the RSI’s divergence indicates a loss in the rebound momentum.

A drop below 0.7235 would lead to a deeper correction to 0.7150.