AUD/USD extends consolidation above the 0.70 handle
- AUD/USD consolidates Monday's gains in tight range.
- RBA doesn't hint at another rate cut in the short-term.
- US Dollar Index inches higher on the back of upbeat sales data.
The AUD/USD pair ignored the Reserve Bank of Australia's (RBA) meeting minutes during the Asian trading hours and extended its consolidation phase above the 0.70 handle before coming under a modest pressure and staging a technical recovery in the second half of the day. As of writing, the pair was trading at 0.7027, losing 0.17% on a daily basis.
In the minutes of its July meeting, the RBA reiterated that they were ready to cut rates again if needed and that the board would continue to monitor the labour market closely. Commenting on the RBA's publication, “We find no indication in the July RBA Minutes that the Bank is considering cutting rates again in the near term," TD Securities analysts said.
Later in the day, the data published by the U.S. Census Bureau revealed that retail sales in June expanded by 0.4% to beat the market expectation of 0.1%. Although the US Dollar Index extended its daily rebound and rose above the 97.30 mark on the back of the data, it failed to preserve its momentum as the Fed's monthly publication showed that industrial production stagnated in June.
At 17 GMT, FOMC Chairman Powell and Chicago Fed President Charles Evans' speeches will be looked upon for fresh impetus.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
