- AUD/USD is keeping gains despite the weaker-than-expected Aussie retail sales data.
- The pair may extend gains on dovish Federal Reserve expectations.
- RBA's Financial Stability Report cites housing market as key risk to economy.
Consumer spending, as represented by August retail sales, came in at 0.4%, narrowly missing the expected 0.5% rise, having dropped by 0.1% in August, the Australian Bureau of Statistics data released at 01:30 GMT showed.
So far, the weaker-than-expected rebound in retail sales has not had any negative impact on the Aussie dollar. As of writing, the AUD/USD pair is trading around 0.6750 – down just five pips from the session high of 0.6756 seen before the retail sales release.
Aussie’s resilience could be associated with the increased odds of an October Federal Reserve rate cut. As of now, more than 90% of traders are pricing in the chance of a third, 25-basis point rate cut at the Fed’s Oct. 30 meeting, according to the CME’s FedWatch tool. The probability stood at 40% on Monday.
Further, the Reserve Bank of Australia’s Financial Stability Review, released at 01:30 GMT, offered little negative surprises. The report cited housing market, uptick in the jobless rate and the slowdown in the income growth as key risks to Australia’s economy. All these negatives are generally accepted and priced in by now.
Looking ahead, the AUD/USD pair may continue to rise, having charted a bullish Doji reversal pattern on the daily chart earlier this week. Also, the dovish Fed expectations will likely keep the pair better bid.
|Today last price||0.6753|
|Today Daily Change||0.0011|
|Today Daily Change %||0.16|
|Today daily open||0.6742|
|Previous Daily High||0.6754|
|Previous Daily Low||0.6702|
|Previous Weekly High||0.6806|
|Previous Weekly Low||0.6738|
|Previous Monthly High||0.6895|
|Previous Monthly Low||0.6687|
|Daily Fibonacci 38.2%||0.6734|
|Daily Fibonacci 61.8%||0.6722|
|Daily Pivot Point S1||0.6711|
|Daily Pivot Point S2||0.668|
|Daily Pivot Point S3||0.6659|
|Daily Pivot Point R1||0.6764|
|Daily Pivot Point R2||0.6785|
|Daily Pivot Point R3||0.6816|
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