Weaker-than-expected US consumer spending data weighs on the USD, supporting the Australian dollar above key levels.
AUD/USD rose to 0.7010 on Thursday, extending gains as the USD weakened after US Retail Sales grew just 0.2% month-over-month in June. The figure matched forecasts but marked a sharp slowdown from May’s 1.0% increase, signaling softer consumer demand.
US Initial Jobless Claims fell to 208K for the week ending July 11, below expectations of 217K and the prior 216K. The data underscored labor market resilience, though cooling retail activity capped USD strength. In Australia, Consumer Inflation Expectations dropped to 4.7% in July from 5.5%, easing pressure on the RBA to tighten policy further.
Technically, AUD/USD remains above its 20- and 100-period SMAs, with resistance at 0.7013 and 0.7021. The RSI nears overbought levels, suggesting potential consolidation.