Australian Dollar Eyes Retail Sales as Iron Ore Rises, US Dollar Falls



Asia-Pacific markets are set to trade higher after a rosy New York trading session. Traders moved into risk assets following the Federal Reserve’s policy announcement. The market trimmed future bets on aggressive rate hikes, dragging on Treasury yields and the US Dollar. The tech-heavy Nasdaq-100 Index (NDX) rose more than 4%.

Iron ore prices rose in China despite a new wave of Covid lockdowns in Wuhan, where a million people were ordered to stay in their homes over the next three days. The higher iron ore prices and broader US Dollar pullback boosted AUD/USD. Rio Tinto Group—an Anglo-Australian mining company—cut its dividend by 50%, which saw its stock price fall in European trading. The iron ore miner announced that it is close to a breakthrough on a new source of iron from Guinea after negotiating a deal with the country’s government.

The Australian Dollar may continue rising against the US Dollar if Australian retail sales impress as iron ore prices rise. AUD/USD is nearing its post-wedge breakout target.
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