Australian Dollar Weakens On Fed Policy Concerns
November 16 2022 - 11:49PM
RTTF2
The Australian dollar fell against its major counterparts in the
European session on Thursday, as stronger-than-expected U.S. retail
sales data raised fears that the Federal Reserve would continue
raising rates in coming months.
The data dampened expectations for a pivot in the monetary
policy following soft CPI data released last week.
An inversion of the U.S. yield curve steepened further,
suggesting a recession ahead.
San Francisco Federal Reserve President Mary Daly said on
Wednesday that pausing rate hikes is off the table right now.
Federal Reserve Governor Christopher Waller said that he won't
make a final decision on tightening before the release of jobs data
and price consumption expenditures report.
The aussie declined to 93.41 against the yen, setting a 3-day
low. The aussie is likely to face support around the 90.00
region.
The aussie touched 2-day lows of 0.6690 against the greenback
and 0.8930 against the loonie, down from its prior highs of 0.6751
and 0.8995, respectively. The currency may face support around 0.64
against the greenback and 0.86 against the loonie.
Reversing from its early highs of 1.0980 against the kiwi and
1.5399 against the euro, the aussie dropped to 1-week lows of
1.0926 and 1.5492, respectively. The next possible support for the
currency is seen around 1.07 against the kiwi and 1.57 against the
euro.
Looking ahead, U.K. Chancellor of Exchequer will present his
Autumn Statement at 7:30 am ET.
U.S. weekly jobless claims for the week ended November 11 and
building permits and housing starts for October will be published
in the New York session.
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