AUD/USD remains on the defensive around 0.6700, eyes on US CPI inflation data
The post AUD/USD remains on the defensive around 0.6700, eyes on US CPI inflation data appeared on BitcoinEthereumNews.com.
AUD/USD trades in negative territory around 0.6715 in Thursday’s early Asian session. The rising speculation of a 25 bps rate cut by the Fed in November underpins the USD. The disappointment over additional China’s stimulus measures weighs on the Aussie. The AUD/USD pair remains under some selling pressure near 0.6715 on Thursday during the early Asian session. The further upside in the Greenback and Chinese demand concerns create a headwind for AUD/USD. Investors will closely monitor the release of the key US Consumer Price Index (CPI) inflation data, which is due later on Thursday. The Federal Open Market Committee (FOMC) Minutes from the September meeting showed the “substantial majority” of the FOMC backed a 50-basis-point (bps) cut. Additionally, some officials would’ve preferred a 25 bps cut, and “a few others” mentioned they could have supported such a move. The upbeat US September jobs report last week eased worries about the cooling labor market and prompted traders to raise bets of a quarter-point rate cut in November, which boosted the US Dollar (USD) broadly. Traders will keep an eye on the US CPI inflation data on Thursday. The headline US CPI inflation is expected to decrease from 2.5% in August to 2.3% in September, while the core CPI inflation is estimated to remain unchanged compared to August’s figure at 3.2% YoY. Nevertheless, if inflation comes in softer than expected, it could open the door for a larger Fed’s easing cycle, which could exert some selling pressure on the USD. On the Aussie front, the disappointment over China’s stimulus update, the firmer USD continue to undermine the Australian Dollar (AUD). Nonetheless, the hawkish stance from the Reserve Bank of Australia (RBA) could cap the pair’s downside. The recent data showed Retail Sales growth for August exceeding expectations, reducing the chances of an early rate cut from…
Filed under: News - @ October 10, 2024 12:19 am