The Fed is expected to signal fewer interest rate cuts for 2025. In Australia, souring consumer sentiment has boosted dovish bets for a potential rate cut by the Reserve Bank of Australia in February. Despite USD softness, the Aussie continues to struggle after failing to sustain earlier gains. Fundamental overview On the data front, the US November Retail Sales report triggered mixed reactions. Monthly Retail Sales grew by 0.7%, beating the 0.
4% chance of a 25 basis points rate cut by the Fed at Wednesday’s meeting, with markets leaning toward a pause in policy easing by January 2025. On the Australian front, the Aussie faces broad-based weakness amid a gloomy market outlook and rising speculation of RBA rate cuts. A 2% decline in Australia’s Westpac Consumer Confidence for December, following a 5.3% increase in November, raised concerns over economic growth. Technical overview The AUD/USD pair declined by 0.42% to 0.