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Australian dollar holds above 0.7000 as US retail sales cool
AUD/USD stayed near 0.7010 after US retail sales rose just 0.2% in June, easing support for the US dollar.
The Australian dollar edged higher on Thursday, holding above the 0.7000 level near 0.7010 as the US dollar struggled to build momentum following mixed US data, FXStreet reported.
US initial jobless claims fell to 208K for the week ending July 11, below expectations of 217K, signaling a resilient labor market. However, US retail sales increased only 0.2% month over month in June, matching forecasts but slowing from a prior 1.0% gain, while the retail sales control group rose 0.5% versus May’s 0.8% increase.
The slower consumer-spending pace weighed on demand for the greenback and helped keep AUD/USD above 0.7000, FXStreet said. In Australia, consumer inflation expectations declined to 4.7% in July from 5.5% previously, which could reduce pressure for the Reserve Bank of Australia to maintain a hawkish stance.
FXStreet also noted technical conditions near-term: the pair traded around 0.7011, holding above the 20-period SMA near 0.6972 and the 100-period SMA around 0.6929. Resistance was cited near 0.7013 and 0.7021, while support was seen at 0.7001, with a deeper pullback potentially targeting 0.6929.