Already a subscriber?The Australian dollar hit a five-month low on Tuesday after more upbeat US economic data cast further doubt on whether the Federal Reserve can embark on interest rate cuts any time soon.March retail sales figures, released overnight, were almost double what economists had been expecting,
The $A slumped to US64.06¢, the lowest since mid-November, as traders trimmed their rate cut bets from the Fed to just 44 basis points of easing in 2024 – that’s down from expectations of 150 basis points earlier in the year., off the back of predictions that the Fed’s rate easing cycle will be delayed.“We think that the Aussie will not be too far from where it is now in the next couple of months,” said NAB’s head of FX strategy, Ray Attrill.
Overnight, the yield on US 10-Year Treasuries jumped to 4.6 per cent, a significant rise from below 4 per cent at the start of the year. The increase, fuelled by strong data, suggests growing investor confidence in the world’s largest economy.
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