Forex News

00:53:32 28-03-2023

AUD/USD continues to juggle below 0.6660 ahead of Australian Retail Sales and CPI data

  • AUD/USD is continuously oscillating below 0.6660 as the focus has shifted to Australian Retail Sales and CPI data.
  • Tuesday’s Retail Sales (Feb) data is expected to expand by 0.4% lower than the former expansion of 1.9%.
  • The USD Index has corrected to near 102.83 as the Fed would terminate its rate-hiking spell sooner.

The AUD/USD pair is demonstrating a back-and-forth action below 0.6660 from Friday’s session. The sideways performance in the Aussie asset is expected to conclude and a power-pack action will be witnessed. Sheer volatility is expected in the Australian Dollar after the release of Tuesday’s Retail Sales and Wednesday’s Consumer Price Index (CPI) data.

Tuesday’s Retail Sales (Feb) data is expected to expand by 0.4% lower than the former expansion of 1.9%. The Reserve Bank of Australia (RBA) is extremely worried about persistent inflation in the Australian economy and a softening retail demand would provide some relief to policymakers.

However, the important catalyst is the monthly CPI data, which is likely to ease to 7.1% from the former release of 7.4%. RBA policymakers have already stated that there is evidence that indicates that Australian inflation has started easing. And, the RBA could terminate its policy-tightening process from April’s monetary meeting as the current monetary policy is restrictive enough to tame the stubborn inflation.

Meanwhile, S&P500 settled Monday’s trading session with decent gains on hopes that the United States banking system will be bailed out as US authorities are making significant efforts by expanding liquidity assistance, portraying a solid risk appetite theme.

 

News provided by the portal FXStreet
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