AUD appears fragile at the 0.64 mark having lost some intraday momentum

Daily Currency Update

The AUD/USD pair saw a minor increase and drifted sideways throughout a mostly calm day. Having originally surged to US$0.6440 during the Asian session, it swiftly reversed course after the US dollar gained momentum and established support around US$0.6400 and US$0.6420. Market watchers are now focusing their attention on US employment and inflation data as they continue to process Federal Reserve Chair, Jerome Powell’s remarks.

Now that the AUD/USD is stable, future speeches and US figures will undoubtedly have an impact on market action. If stock markets are doing well, the Australian dollar could get some assistance over the coming hours. On the domestic data front, Australia's retail sales improved by 0.5% in July, more than predicted, following a 0.8% decrease in June. This is crucial in light of the low consumer confidence; experts have warned that consumers would probably continue to cut spending in the months to come.

Now the spotlight is on Michele Bullock, the Deputy Governor of the Reserve Bank of Australia (RBA), who will speak today.  On the US side, The Dallas Fed Manufacturing Business Index for August in the US improved, going from -20 to -17.2, according to economic statistics issued on Monday. Oncoming statistics on inflation and the labour market, such as the core Personal Consumption Expenditures on Thursday and the Non-farm Payrolls on Friday, are now the main topics of discussion.