AUD/USD rallies as Fed fears ease and Australian spending data impresses

AUD/USD surged 0.9% to 0.6580 as Australian retail spending data jumped 0.8% month-over-month, exceeding forecasts and easing recession fears. The aussie dollar benefited from a perfect storm of supportive factors: strong domestic data, easing Fed hawkishness, and rising commodity prices with iron ore up 2.5%. The RBA's steadfast position on maintaining rates at 4.35% contrasts with market expectations for Fed cuts, creating favorable rate differentials. Technical momentum is firmly bullish, with the pair breaking above the 200-day moving average at 0.6550 and targeting 0.6650 resistance. Chinese stimulus hopes also support AUD, with Beijing's latest infrastructure announcements boosting demand expectations for Australian exports. Support levels are established at 0.6550 and 0.6500, while a break above 0.6650 could accelerate gains toward the 0.6700-0.6750 zone.