fundamental News - AUD/USD
The bid tone around the Aussie dollar strengthened, helping AUD/USD reverse early losses after Australia's macro data beat estimates by a big margin.
As represented by Retail Sales, consumer spending rose 1.6% month-on-month in October, surpassing the 0.3% growth projection following September's 1.1% contraction.
The pair rose from 0.7275 to 0.7285, erasing the early decline following the Aussie data's release. At press time, the AUD/USD pair is trading largely unchanged on the day near 0.7285.
The upside is being capped alongside losses in the US stock futures. The risk sentiment has soured, possibly in response to the US Treasury Secretary Steven Mnuchin's decision to pull the plug on the pandemic relief for struggling businesses. With the additional fiscal spending looking increasingly unlikely, the Federal Reserve may have to do the heavy lifting of supporting the economy amid the second-wave of the coronavirus pandemic.
Further, the rising number of coronavirus cases in the US and fresh lockdown prospects look to be weighing over the sentiment. The People's Bank of China (PBOC) kept rates unchanged at 3.85% early today in a sign of confidence in the economic recovery. The status quo move has not had any impact on markets so far.