The post AUD/USD skidding towards 0.6300 as Aussie rolls over against Greenback appeared on BitcoinEthereumNews.com.

The AUD/USD is backsliding on Wednesday, tumbling over 90 pips from the day’s early peak. Further red is on the cards as broad-market risk appetite sours, sending the USD higher. Aussie inflation risks are increasing, and the RBA’s holding pattern has investors worried. The AUD/USD hit an early high of 0.6399 on Wednesday, falling just shy of the 0.6400 handle before the Aussie (USD) went into a full reversal, sending the pair tumbling 1.4% from the day’s high bids to trade back into the 0.6300 region. Q3 CPI too high to risk holding, failing to act could harm the RBA’s credibility – TDS Australian inflation came in higher than expected early Wednesday, with the Reserve Bank of Australia (RBA) Trimmed Mean Consumer Price Index (CPI) printing at 1.2% for the 3rd quarter, compared to the previous quarter’s 1% printing and overshooting market forecasts of 1.1%. Markets are now concerned that long-term inflation is beginning to set in for the Australian economy, and the RBA’s current wait-and-see pattern on interest rate hikes may not be enough to curtail price growth despite a lagging economy with cracks beginning to surface. The RBA may be pushed to make further rate hikes in order to clamp down on inflation that is once again picking up speed, even at the risk of pushing the Aussie economy a step closer to a “hard landing” recession. The AUD will close out Wednesday’s trading action with a showing from the RBA’s Governor Michelle Bullock, who will be testifying before the Australian government’s Senate Economics Legislation Committee at 22:00 GMT. US GDP, Jobless Claims data in focus for Thursday Thursday will see US Gross Domestic Product (GDP) and Initial Jobless Claims, which should drive USD momentum heading into the latter portion of the trading week. US GDP for the 3rd quarter…

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Filed under: News - @ October 26, 2023 1:24 am