AUD Surges as US Retail Sales Disappoint
The Australian Dollar has gained traction and is nearing the 0.7100 level following the release of US Retail Sales data, which showed a decline of 0.6% month-over-month in July.
This figure came in below market expectations of a 1.0% growth, dampening market expectations for a September Fed rate hike.
The odds of a September increase dropped from around 50% to 33.1% this week, according to the CME FedWatch tool.
Analysts at Societe Generale highlight that the Reserve Bank of Australia's latest communication maintained a distinctly firm tone, noting that 'the statement was hawkish and Governor Bullock declared the bank would not hesitate to act if needed.'
The health of the Chinese economy, Australia's largest trading partner, is also being closely monitored by traders.