AUD/USD has temporarily paused its downward movement.
The Australian dollar, paired with the US dollar, has hit a four-week low. The current AUD/USD quote stands at 0.6606.
The peak of AUD at 0.6900 seems like a distant memory now.
The temporary relief in selling pressure on AUD may be attributed to the release of recent Australian statistics. The data indicates a 0.7% month-on-month increase in retail sales for May, surpassing expectations. This strengthens the case for the Reserve Bank of Australia to potentially raise interest rates once again.
Although there has been a slight reduction in job vacancies, the Australian labor market remains robust.
Overall, these combined data points have partially offset the market's disappointment following the release of the Australian inflation report, which revealed a noticeable decline in prices.
Investors are estimating a 36% probability of an interest rate hike to 4.35% per annum at the July meeting.