The Australian dollar rises 0.4% to 0.7115, fueled by softer US data reducing Fed rate hike bets for September.
AUD/USD climbed to its highest level in 10 weeks, trading near 0.7115 and up 0.4% on the day. The move is driven by broad-based US dollar weakness, as recent US economic data on employment, inflation, and retail sales undershot expectations, dampening expectations for a Federal Reserve rate hike in September.
The Fed held its benchmark rate at 3.50%-3.75% in early August, with three officials dissenting in favor of a hike. Meanwhile, Chinese economic data released Monday showed slowing industrial production and retail sales, missing forecasts and signaling weaker domestic activity. Despite the Aussie’s sensitivity to Chinese demand, the currency shrugged off the data as USD weakness overshadowed concerns.
Technical indicators remain bullish, with the pair holding above its 20-period and 100-period simple moving averages on the 4-hour chart.