AUD Surges as RBA Hints at Further Tightening Ahead of US Retail Sales Data
The Australian Dollar has gained some ground against the US Dollar on Friday, as comments from the Reserve Bank of Australia's Assistant Governor Chris Kent hinted at further monetary tightening in the near-term.
Kent's remarks came after a hawkish hold by the central bank earlier this week, with Governor Michelle Bullock affirming that a rate hike is still top of mind for the committee.
The US Dollar, on the other hand, has lost momentum ahead of the release of July's US Retail Sales figures. Analysts at Danske Bank highlight that private consumption was the most important growth driver in Q2, and that July's reading will be the first hard data evidence of whether the strength continued into late summer.
The market consensus anticipates a 0.1% uptick in retail consumption in July, following a 0.2% gain in June. The release of the US Retail Sales Report is expected to have an impact on the US Dollar's performance.