Aussie Dollar dips on weak retail sales figures but recovers above 69 cents

In short

1. The Australian dollar fell after soft retail sales figures but remained above 69 cents
2. It recovered against the British pound (GBP), Japanese Yen (JPY) and Euro (EUR) but stayed down against the NZ dollar (NZD)
3. RBA unlikely to cut rates on Melbourne Cup on Tuesday

The Australian dollar was under fire early in the week as soft retail sales data sent it south.

Figures showed almost no growth in retail sales of 0.2% which was lower than the 0.4% from last month. While the result wasn't entirely unexpected, the AUD still fell.

The fall didn't last too long as the local currency rebounded against most major currencies with the exception of the New Zealand Dollar.

Looking ahead this week, the RBA will hold its second last meeting of 2019. Until recently, many economists had forecast an interest rate cut however in the past fortnight, the economic data has showed more positive signs.

This has meant that the market is no longer expecting the RBA to cut interest rates on Melbourne Cup Tuesday, but instead, wait until December of possibly even February.

The big questions is if the Australian dollar can hold onto it's recent gains and move above 70 cents or fall back to its 10-year low below 67 cents.