Australian Dollar Weakens On Fed Policy Concerns

The Australian dollar fell against its major counterparts in the European session on Thursday, as stronger-than-expected U.S. retail sales data raised fears that the Federal Reserve would continue raising rates in coming months.

The data dampened expectations for a pivot in the monetary policy following soft CPI data released last week.

An inversion of the U.S. yield curve steepened further, suggesting a recession ahead.

San Francisco Federal Reserve President Mary Daly said on Wednesday that pausing rate hikes is off the table right now.

Federal Reserve Governor Christopher Waller said that he won't make a final decision on tightening before the release of jobs data and price consumption expenditures report.

The aussie declined to 93.41 against the yen, setting a 3-day low. The aussie is likely to face support around the 90.00 region.

The aussie touched 2-day lows of 0.6690 against the greenback and 0.8930 against the loonie, down from its prior highs of 0.6751 and 0.8995, respectively. The currency may face support around 0.64 against the greenback and 0.86 against the loonie.

Reversing from its early highs of 1.0980 against the kiwi and 1.5399 against the euro, the aussie dropped to 1-week lows of 1.0926 and 1.5492, respectively. The next possible support for the currency is seen around 1.07 against the kiwi and 1.57 against the euro.

Looking ahead, U.K. Chancellor of Exchequer will present his Autumn Statement at 7:30 am ET.

U.S. weekly jobless claims for the week ended November 11 and building permits and housing starts for October will be published in the New York session.