Australian Dollar Daily Chart
Heading into the US session, retail sales data could influence Fed rate expectations, impacting AUD/USD price action.
Stronger-than-expected retail sales could support a more hawkish Fed stance. Fading bets on a Fed rate cut in 2025 would widen the US-Australia interest rate differential in favor of the US dollar. In this case, the AUD/USD pair may drop below the 50-day EMA, bringing $0.62500 into play.
Conversely, a softer retail sales reading may narrow the interest rate differential, potentially driving the pair toward the $0.63623 resistance level.
