AUD Surges as Fed Hike Bets Fade Amid Weaker US Data

The Australian Dollar (AUD) is gaining traction near 0.7100 as bets on a Federal Reserve rate hike fade amid weaker US economic data.

Data released by the US Census Bureau showed that US Retail Sales declined 0.6% month-over-month in July, below market expectations of a 0.1% growth.

This figure came in at 5.0% year-over-year in July versus 6.8% (revised from 6.7%) in June.

The odds of a September Fed rate hike dropped to 33.1% this week, according to the CME FedWatch tool, down from around 50% previously.