Daily digest market movers: Australian Dollar steady ahead of Fed
- US Dollar consolidates recent losses on bets for a 50 bps rate cut by the Fed.
- RBA’s hawkish outlook supports the risk-sensitive Australian Dollar.
- Fundamental backdrop favors the AUD, but concerns about China's economic slowdown could act as a headwind.
- Soft Retail Sales data from the US had little market reaction though US data may be limited as focus remains on Fed interest rate decision come Wednesday.
- Fed is expected to cut interest rates by 25 bps, according to analysts, but a 50 bps cut remains more likely, according to CME FedWatch Tool.
- A smaller-than-expected rate cut could boost the US Dollar and weigh on the AUD.
- A dovish Fed stance could benefit the AUD, while a hawkish stance could bolster the USD.
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