AUD/USD climbs despite solid US data on hawkish RBA minutes

• AUD/USD advances, trading around 0.6371 after bouncing from daily lows.
• Richmond Fed President Thomas Barkin's comments on the restrictive policy stance, remains undecided for the upcoming FOMC meeting.
• Hawkish RBA meeting minutes hint at a potential rate hike in November, with a focus on Q3 inflation data.

The Aussie Dollar (AUD) edges higher vs. the US Dollar (USD) in the mid-North American session, rising more than 0.50% after hitting a daily low of 0.6332. Even though upbeat economic data from the United States (US) warranted lower exchange rates, tilted hawkish Reserve Bank of Australia’s (RBA) minutes bolstered the AUD. At the time of writing, the AUD/USD is trading at 0.6371.

AUD/USD gains momentum despite strong US Retail Sales, eyes on Chinese GDP data

The US economic docket recently featured the Richmond Fed President Thomas Barkin, who said that policy is already restrictive and he’s undecided regarding the upcoming FOMC monetary policy meeting in November. He added the US central bank can’t rely in longer-term higher bond yields to tighten monetary conditions.

Earlier, the US Bureau of Economic Analysis (BEA) revealed that Retail Sales in September crushed estimates of 0.3% MoM as figures jumped 0.7%, as consumers remain resilient. Later, the Federal Reserve announced that Industrial Production picked up despite having interest rates at higher levels.

During the Asian session, the latest Reserve Bank of Australia (RBA) meeting minutes portray the bank as hawkish, keeping the door open for a November hike as RBA officials eye Q3’s inflation report. Aside from this, Chiina’s data would reveal if the second largest economy continues to lose traction, as most analysts expect a slowdown in growth, with estimates circa 4.4% YoY, below the Chinese government projections of 5%.

A weak number on Chinese GDP could weigh on market sentiment, therefore dragging Aussie Dollar (AUD) prices lower. Otherwise, upbeat figures could trigger another AUD/USD pair leg-up.

AUD/USD Price Analysis: Technical outlook

After forming a bullish-piercing pattern, the AUD/USD extends its gains past Monday’s daily high of 0.6345, though shy of reclaiming 0.6400. A breach of the latter, the pair would test the 50-day moving average (DMA) at 0.6416 before threatening to crack the latest cycle high of 0.6445. On the other hand, the pair would resume its downtrend, towards 0.6300, before the AUD/USD challenges the year-to-date (YTD) low of 0.6285.