Anna 
The Australian Dollar (AUD) experienced a decline on Tuesday following the release of lower-than-expected domestic retail sales data. Retail sales figures serve as crucial leading indicators directly linked to inflation and growth prospects, potentially impacting the Reserve Bank of Australia’s (RBA) stance on interest rate adjustments.
Despite this setback, the Australian Dollar could potentially recover, supported by last week’s higher-than-anticipated domestic inflation data. This positive data has led to speculation that the RBA might delay its plans for interest rate cuts. Additionally, the Commonwealth Bank, Australia’s largest mortgage lender, has revised its forecast for the timing of the first interest rate cut by the RBA, now predicting a single cut in November, according to the Financial Review.
Meanwhile, the US Dollar Index (DXY), which measures the USD’s performance against six major currencies, has rebounded recently. This rebound follows hawkish statements from US Federal Reserve (Fed) officials, suggesting that there is no immediate necessity for rate cuts.
Traders are now focusing on upcoming events, particularly Wednesday’s release of the ADP Employment Change and ISM Manufacturing PMI from the United States, alongside the Fed’s interest rate decision. These developments are expected to impact market sentiment and influence movements in the USD.
