AUD/USD climbs to 0.7083 after weaker-than-expected US retail data fuels Fed pause speculation.
The Australian Dollar strengthened against the US Dollar on Friday, trading at 0.7083, after US retail sales data fell short of expectations. The miss reinforced bets that the Federal Reserve may halt interest rate hikes amid signs of economic softening.
US retail sales figures, a key indicator of consumer demand, came in below consensus estimates. The data follows recent mixed economic signals, including softer inflation prints and slowing job growth, which have weighed on Fed tightening expectations.
Markets are now pricing in a higher probability of a pause in the Fed’s rate-hike cycle, supporting risk-sensitive currencies like the Australian Dollar.