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The Aussie Dollar<\/a> extended its losses against the Greenback during the North American session, dropping some 0.08% after hitting a daily high of 0.6493. The AUD\/USD trades at 0.6452 following the release of strong US Retail Sales data.<\/p>\n The US Department of Labor revealed that Sales in March smashed estimates of 0.4% and rose by 0.7% MoM. At the same time, Retail Sales in the control group\u2013 used to calculate the Gross Domestic Product<\/a> (GDP) \u2013 jumped from 0.3% in February to 1.1% MoM in March, crushing forecasts of a 0.4% expansion.<\/p>\n Following the data, US Treasury yields soared, a reflection that investors expected fewer interest rate cuts by the Federal Reserve. Data from the Chicago Board of Trade (CBOT) shows traders expecting two rate cuts instead of three toward the end of the year, an indication that rates would end at the 4.75%-5.00% range.<\/p>\n Other data showed that the National Association of Home Builders (NAHB) Housing Market Index remained unchanged at 51 in April due to mortgage rates standing at 7%. NAHB Chairman Carl Harris said, “April\u2019s flat reading suggests potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed.\u201d<\/p>\n Risk appetite is significantly impacting the AUD\/USD, courtesy of tensions arising in the Middle East. The recent offensive by Iran against Israel, which finished without casualties, has underscored the potential volatility in the region and its potential impact on the AUD\/USD.<\/p>\nAustralian Dollar weakens as robust US economic data dampen rate cut expectations<\/h2>\n