AUD/USD snaps a two-day winning streak, holds above 0.6350 following RBA’s Bullock speech

• AUD/USD attracts some sellers around 0.6360 following the RBA’s Bullock speech.
• The Reserve Bank of Australia (RBA) Governor said the central bank will respond with policy if inflation remains higher than expected.
• US Retail Sales for September rose by 0.7% MoM, above the market consensus of 0.3%.

The AUD/USD pair snaps a two-day winning streak during the early Asian session on Wednesday. The pair faces some follow-through selling after reaching the 0.6380 area. AUD/USD currently trades near 0.6360, losing 0.07% on the day.

Early Wednesday, the Reserve Bank of Australia (RBA) Governor Michele Bullock said the central bank will respond with policy if inflation remains higher than expected. Bullock further stated they are a bit more worried about the inflation impact from supply shocks.

On Tuesday, the US Census Bureau reported that the US Retail Sales for September rose by 0.7% MoM, above the market consensus of 0.3%. Retail Sales Control Group grew 0.6% MoM versus 0.2% prior. The data suggest strong momentum in consumption. In response to the upbeat data, the Greenback edged higher but the impact was short-lived.

Market players will take more cues from the Fed speakers on Wednesday, including Waller, Williams, and Bowman, which might offer some hints about further monetary policy paths. The hawkish remarks from the Fed officials might boost the USD demand and act as a headwind for the AUD/USD pair.