AUD/USD receives some support on positive Australian data

The AUD/USD pair is trading near 0.6375 as investors prepare for a mid-week Fed rate decision. The AUD has gained strength due to positive Australian data, such as Australian Retail Sales exceeding forecasts. September’s retail sales showed a 0.9% increase, significantly higher than the 0.3% estimate.

US investors are anxiously awaiting the Federal Reserve’s most recent statement, which is expected to be released on Wednesday. A possible rate hike by the Fed at the end of 2023 in December is another expectation, given US data showing a strengthening economy despite the Fed’s zero percent policy.

Investors are looking ahead to a potential rate hike from the Fed in December to close out 2023, as US data shows a firming-up economy despite restrictive monetary policy.