AUD/USD AIMS TO RECAPTURE 0.6700 AS WORRIES FOR BIGGER FED RATE HIKES FADE ll

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The US Dollar Index (DXY) has managed to safeguard the 103.60 support, however, the downside seems likely as the risk-appetite theme is getting more traction. Meanwhile, the alpha provided on 10-year US Treasury bonds has scaled to 3.69%.

After the expected decline in the US Consumer Price Index (CPI), investors are awaiting the release of the Retail Sales data. Analysts at Credit Suisse expect “Retail sales to fall 0.9% MoM in February, partly reversing a strong increase in January. Noisy seasonal adjustments and unseasonably warm weather likely played a role in last month’s report, so a normalization lower is likely.”

On the Australian Dollar front, Reuters reported that Australia’s economic outlook will be scrutinized by the Reserve Bank of Australia (RBA) for rate hikes, unlike other nations that are focusing on SVB collapse. Analysts at three of the top four lenders - Commonwealth Bank of Australia, National Australia Bank, and ANZ Group Holdings - continue to expect RBA Governor Philip Lowe to deliver its 11th consecutive rate hike next month.

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