The Aussie dollar managed to gain some ground against the softer U.S. dollar today, to trade just under 0.6440. Powell’s remarks at Jackson Hole on Friday, left the market digesting still that rates may go higher if necessary. Falling U.S. bond yields also helped the Aussie into positive territory, along with a positive Australia Retail Sales, coming in at a gain of 0.5%, much higher than the previous reading in June of -0.8%. Helping boost that retail sales number was the Women’s World Cup which was held in Australia, which will of course help the August number as well.
It is a full week of key data out of the U.S. this week with Consumer Confidence, Goods Trade Balance, Chicago PMI, Unemployment claims on Thursday and Non-Farm payrolls on Friday, which will be key as the market will be awaiting U.S. jobs data to get a much clearer picture of the U.S. economy and whether interest rates will keep on going higher.
The market will be paying very close attention to a speech from the soon to be RBA Governor Bullock, as it may give direction to AUDUSD, since the Central bank has paused on rate hikes in the last two meetings.
