The market mood remains upbeat as the Fed is not expected to raise interest rates further this year.The AUD/USD pair
eyes further recovery toward the psychological resistance of 0.6500 as a stronger-than-expected Australian labor market report for August raised hopes for one more interest rate increase from the Reserve Bank of Australia . Australian Bureau of Statistics reported that the labor force recorded a fresh arrival of 64.9K payrolls, higher than expectations of 23K. In July, the Australian employers shed 1.4K workers. TheSolid labor growth is expected to encourage RBA policymakers to deliver one more interest rate hike in the remaining year. It is worth noting that the RBA has kept interestMeanwhile, S&P500 futures added decent gains in the European session, portraying a risk-on mood.
The headline PPI is seen expanding at a higher pace as gasoline prices turned costly in August, while the core PPI that excludes oil and food prices softened. Apart from the US PPI data, monthly Retail Sales data will remain in focus. As per the estimates, the economic data expanded at a slower pace of 0.2% than the 0.7% pace recorded for July. A slowdown in consumer spending momentum indicates that higher inflationary pressures are biting household income.