- AUD/USD rose nearly 0.25% on Monday, recouping some of Friday’s losses.
- AUD/USD gains were limited last week by Fed comments.
- Retail sales in Australia were better than expected, driven by tourism.
AUD/USD escaping from Fed policy stimulus last Friday Driven by risky sentiment, it returned to the 0.6900 mark after hitting a six-week low near 0.6840 during the North American session. Powell’s hawkish comments sent U.S. stocks down nearly 3 percent on average between the S&P 500, Nasdaq and Dow.
AUD/USD opened below last Friday’s close and edged closer to 0.6840, then recovered some lost ground to hit a daily high of 0.6925 before Closed near the current spot price. At the time of writing, AUD/USD is trading at 0.6907, almost 1% above its opening price.
AUD/USD moves higher on positive Australian data, USD weakens The Australian dollar rose on the back of a weaker US dollar, which fell 0.09% to 108.736, as shown by the US dollar index. In addition, commodity prices, led by crude oil and iron ore, are boosting commodity-linked currencies such as the Australian, New Zealand and Canadian dollars.
U.S. stocks are extending losses after Jerome Powell’s speech on Friday, saying the Fed’s main The goal is to raise inflation to the 2 percent target, even if that spurs sluggish growth and “inflicts pain on households and businesses.” “Without price stability, the economy doesn’t work for anyone,” he added.
On Friday, U.S. economic data showed, The core Fed’s favorite inflation gauge, the PCE deflator, rose 0.1% month-on-month, missing expectations. Still, the three-month annualized figure was high, and Powell welcomed the data, reiterating the need for the Fed to move into restrictive territory. Subsequently, the unit of measure consumer confidence index improved to 58.2, reflecting lower gasoline prices.
During the Asian session, Australia’s July retail sales data rose 1.3% with a better-than-expected preliminary reading, boosting AUD/USD . According to ANZ analysts, sales in Australia were driven by tourism and returning residents.
“We noted last month that very negative net arrivals in June may be the key to weak retail sales growth, rather than Start of consumption slowdown. ANZ analysts write.
AUD/ USD key technical level
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