AUD/USD holds positive ground above 0.6650 as weaker US Retail Sales data boosts Fed rate cuts chance

FXStreet
Updated Jun 19, 2024 01:21
Mitrade
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Source: DepositPhotos

■  AUD/USD drifts higher around 0.6660 in Wednesday’s early Asian session. 

■  US Retail Sales came in weaker than expected, rising 0.1% MoM in May from a 0.2% drop in April.

■  The RBA left the cash rate at 4.35% on Tuesday, as widely expected. 


The AUD/USD gains traction near 0.6660 during the trading hours on Wednesday. The pair edges higher after the weaker-than-expected US Retail Sales data and hawkish hold from the Reserve Bank of Australia (RBA) at its June meeting on Tuesday. 

The recent US Retail Sales report suggested signs of subdued activity among US consumers, prompting the case for US Federal Reserve (Fed) rate cuts later this year, which weakened the Greenback broadly. The US Retail Sales increased 0.1% on a monthly basis in May from a 0.2% drop in April, below the consensus for a rise of 0.2%, according to the Commerce Department on Tuesday.

Many Fed officials on Tuesday highlighted the Fed's commitment to making decisions based on incoming economic data. Boston Fed President Susan Collins warned against overreacting to "promising" economic news. Collins added that despite progress on inflation, it is still too early to say whether or not inflation is on course towards the Fed’s 2% target. 

Meanwhile, Richmond Fed President Thomas Barkin, said the recent data showed consumer prices did not rise at all from April to May, but the choppiness in data since last year means the policy path ahead is not clear. Investors are now pricing in a first-rate cut in September, with a second rate cut expected in December.

On the Aussie front, the RBA left the key interest rate unchanged at 4.35% for the fifth consecutive meeting in June, as widely anticipated by market participants. The central bank decided to stay the course on policy as it needed a lot to go its way to bring inflation back to range. The monetary policy statement showed that inflation remains above target and is proving persistent and the RBA needs to be confident that inflation is moving sustainably towards the target range. The hawkish hold from the RBA provides some support for the AUD and creates a tailwind for the AUD/USD pair. 


USD/JPY


Overview
Today last price 157.85
Today Daily Change 0.13
Today Daily Change % 0.08
Today daily open 157.72
 
Trends
Daily SMA20 156.76
Daily SMA50 155.68
Daily SMA100 152.77
Daily SMA200 150.13
 
Levels
Previous Daily High 157.96
Previous Daily Low 157.16
Previous Weekly High 158.26
Previous Weekly Low 155.72
Previous Monthly High 157.99
Previous Monthly Low 151.86
Daily Fibonacci 38.2% 157.65
Daily Fibonacci 61.8% 157.46
Daily Pivot Point S1 157.27
Daily Pivot Point S2 156.81
Daily Pivot Point S3 156.46
Daily Pivot Point R1 158.07
Daily Pivot Point R2 158.42
Daily Pivot Point R3 158.87

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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