The post AUD/USD remains on the defensive above the 0.6300 mark amid the geopolitical tensions appeared on BitcoinEthereumNews.com.

AUD/USD holds above the 0.6300 psychological support in early Monday. The escalated geopolitical tension, downbeat Chinese CPI data weigh on the Aussie Dollar. US Michigan Consumer Sentiment Index is softer than expected; inflation expectations for one year rose from 3.2% to 3.8%. The AUD/USD pair remains on the defensive during the early Asian session on Monday. Risk sentiment will dominate the pair ahead of the US Retail Sales and the Reserve Bank of Australia (RBA) Meeting Minutes on Tuesday. The pair currently trades near 0.6305, up 0.15% on the day. On Friday, the National Bureau of Statistics of China revealed that the Chinese Consumer Price Index (CPI) for September came in at 0% YoY from the previous reading of 0.1%, worse than the market consensus of 0.2%. The Producer Price Index fell to 2.5% from a 3% drop in August, missing the expectation of a 2.4% decline. The Chinese readings show that the economy is still struggling despite the latest government stimulus plan to boost the nation in meeting its 5% growth target. Furthermore, the escalated geopolitical tension in the Middle East continues to exert pressure on the risk-perceived currencies, like the Aussie Dollar (AUD), and acts as a headwind for the AUD/USD pair. On the USD’s front, the upbeat US inflation report has prompted investors to price in a possible rate rise by the Federal Reserve (Fed). The US Consumer Price Index (CPI) annually and monthly for September came in at 3.7% and 0.4%, respectively. Both figures exceeded the market expectations. On Friday, the preliminary US Michigan Consumer Sentiment Index for October eased to 63.0 from the previous reading of 68.1, worse than expected of 67.4. Meanwhile, Inflation expectations for one year rose from 3.2% to 3.8%, while for five years jumped to 3% from 2.8%. In the meantime,…

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Filed under: News - @ October 15, 2023 10:58 pm