- AUD/USD remains depressed near six-week lows after Aussie data.
- Australia’s retail sales fell by 4.2% in August.
- The US dollar is gaining altitude across the board.
The dismal Australian Retail Sales data released soon before press time could bolster the bearish pressures around the Aussie dollar.
As represented by Retail Sales, the consumer spending fell by 4.2% month-on-month in August, following July’s 3.2% increase, the preliminary data published at 01:30 GMT showed.
The data validates the Reserve Bank of Australia’s cautiously optimistic view of the economic recovery and its commitment to keep the monetary policy loose for a prolonged period.
On Tuesday, the central bank’s deputy governor Guy Debelle revealed that official interest rates might not move for at least three years given the headwinds facing the jobs market and inflation. Debelle added that the bank stands ready to boost asset purchases if required.
As such, the Aussie dollar may face more substantial selling pressure during the day ahead. So far, the weak Aussie data has failed to elicit a negative reaction from the Aussie dollar. The AUD/USD pair continues to trade in the red near the six-week low of 0.7128 reached just ahead of the Aussie data.
The US dollar picked up a strong bid on Tuesday after Chicago Federal Reserve (Fed) President Charles Evans sounded less dovish than the recent Fed messaging. The dollar has been gaining ground of late due to the risk aversion in the global equity markets. AUD/USD pair has declined by more than 200 pips since Sept. 18.
Technical levels
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