- AUD / USD fell 30 pips as US retail sales for October grew the most in seven months.
- US industrial production beat expectations, boosting the dollar.
- RBA Governor Philip Lowe said the data would not support a rate hike in 2022.
During the American session, the Aussie dipped as better-than-expected US retail sales appear to convince USD bulls to back the dollar against the Aussie, prompting a downward move of 23 pips after the announcement. At the time of writing, the AUD / USD is down 0.42%, trading at 0.7315.
US retail sales for October beat the September reading
In the American session, the US Census Bureau published Retail Sales for October, which increased 1.7%, more than the 1.4% predicted by analysts, well above the 0.8% of September. Also, excluding Autos, sales for the same period expanded at the same rate as the title, 1.7%, higher than the estimated 1%.
The jump in retail sales is the biggest in seven months and followed a revised September figure. It is worth noting that the figures do not adjust for price changes to reflect high prices. Revenue at gas stations increased 3.9%, the highest since March, reflecting how people are paying some of the highest prices in seven years.
A few minutes later, the US Industrial Production for October followed in the footsteps of Retail Sales, rising 1.6%, better than the 0.7% expected by economists.
RBA Governor Philip Lowe said recent data would not support a rate hike in 2022
Meanwhile, in the Asian session, the Reserve Bank of Australia (RBA) revealed its Monetary Policy Minutes. The central bank reinforced its previous stance that the cash rate will remain at its current level until 2024 unless wage growth and inflation targets are met. Additionally, RBA Governor Philip Lowe said the latest data does not guarantee a rate hike in 2022.
Later in the day, some members of the Fed will give their speeches. Raphael Bostic of the Atlanta Fed, and Thomas Barkin of the Richmond Fed, will speak at 17:00 GMT. At 20:30 GMT, Mary Daly of the San Francisco Fed would be the last to comment.
Therefore, AUD USD traders could expect further downward pressure on the pair. Central bank policy divergence, between the Fed and the RBA, would be the main driver of the pair’s price, but market sentiment should also be considered as a tailwind for AUD / USD.
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