AUD/USD eyes more weakness despite higher-than-expected monthly Retail Sales data


  • AUD/USD is expecting more downside despite better-than-expected Aussie Retail Sales data.
  • Aussie monthly Retail Sales figures have landed at 0.6%, higher than the expectations of 0.4%.
  • Fed Powell will sound hawkish as price pressures are extremely far from the desired rate of 2%.

The AUD/USD pair is expected to drop to near 0.6400 despite the release of the lower-than-expected monthly Retail Sales data. The economic data has landed at 0.6%, higher than the estimates of 0.4%, but lower than the prior release of 1.3%.

When inflationary pressures are skyrocketing in the Australian economy and the Reserve Bank of Australia (RBA) is continuously tightening its policy, higher Retail Sales data will delight the central bank. Investors should know that the RBA has already raised its Official Cash Rate (OCR) by 2.35%. This month the RBA elevated its OCR by 50 basis points for the fourth time.

Meanwhile, the US dollar index (DXY) is having a ball after the release of upbeat Consumer Confidence data. The US Conference Board reported the sentiment data at 108.0 higher than the prior release of 103.6. The high confidence of consumers in the US economy will delight the Federal Reserve (Fed) as it is a sign of robust demand by individuals. This will support the Fed to announce more rate hikes unhesitatingly.

Going forward, the speech from Fed chair Jerome Powell will remain in the limelight. Fed policymaker is expected to dictate the likely monetary policy action by the Fed for its scheduled monetary policy which will take place in the first week of November and mid of December. As price pressures have not responded in conjunction with the current pace of hiking interest rates by the Fed, the 'hawkish’ stance will be adopted by Fed’s Powell.

AUD/USD

Overview
Today last price 0.6411
Today Daily Change -0.0024
Today Daily Change % -0.37
Today daily open 0.6435
 
Trends
Daily SMA20 0.6712
Daily SMA50 0.686
Daily SMA100 0.6917
Daily SMA200 0.7087
 
Levels
Previous Daily High 0.6513
Previous Daily Low 0.6414
Previous Weekly High 0.6748
Previous Weekly Low 0.6512
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci 38.2% 0.6452
Daily Fibonacci 61.8% 0.6475
Daily Pivot Point S1 0.6395
Daily Pivot Point S2 0.6355
Daily Pivot Point S3 0.6295
Daily Pivot Point R1 0.6494
Daily Pivot Point R2 0.6553
Daily Pivot Point R3 0.6593

 

 

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