grew by 1.3% MoM against 1% expectations by analysts. In the same report, the control group sales used to calculate the Gross Domestic Product rose 0.7% MoM against a 0.3% increase.
Given that the last two inflation reports in the United States, the Consumer Price Index and the Producer Price Index , were softer, consumers exerted additional pressure on the Federal Reserve . However, a slew of Federal Reserve officials crossing newswires commented that the central bank is resolute in tackling inflation but with gradual interest-rate increases.
Later, two Fed officials crossed wires. New York Fed President John Williams said that price stability is essential for the US economy to function well. Later, the San Francisco Fed President Mary Daly said the central bank wants to see the economy slow, so they can get inflation down. She added that “Pausing is not part of the discussion” and foresees the Federal Funds rate to peak at around 4.75% - 5.25%.from September’s 0.1% to -0.1% MoM, below estimates of a 0.2% increase.
Analysts at ING said: “Consequently, even with the last inflation and now wages data surprising on the upside, we don’t believe they will shift back to their previous 50bp pace of tightening and will continue at a 25bp pace at coming meetings, with the peak for cash rates likely to come in 1Q23 as the cash rate hits 3.6%.”
The AUDUSD retreated from weekly highs and trimmed its earlier gains, even though the inverted head-and-shoulders pattern remained in play. As long as the AUDUSD remains above the 0.6700 figure, a move to the inverted head-and-shoulders pattern target at 0.6870 is on the cards.From a daily chart perspective, the AUDUSD remains neutral-to-upward biased. The inverted head-and-shoulders are still intact unless the major plunges below 0.6400.