The Australian dollar climbs to 0.7106, its highest in two months, as softer US retail sales weigh on the greenback.
The Australian dollar advanced to 0.7106, a two-month high, gaining 0.32% as a weaker US dollar offset mixed economic signals. Soft US retail sales data last week contributed to the greenback’s decline, though Treasury yields surged amid inflation concerns tied to rising oil prices and geopolitical tensions.
US economic data showed the NY Fed Empire State Manufacturing Index hitting a four-year high, though sub-components delivered mixed results. Upcoming US releases include the Fed’s August meeting minutes, jobless claims, and flash PMIs, while Australia’s docket features Westpac Consumer Confidence and Q2 Wage Price Index data, expected to rise 0.8% QoQ.
Technical analysis suggests AUD/USD retains a bullish bias, holding above key trendline support. Market sentiment remains cautious as traders weigh weaker US data against inflationary pressures from higher crude prices.