The post AUD/USD retreats sharply from 0.6500, back inside the consolidation range appeared on BitcoinEthereumNews.com.

AUD/USD trades around 0.6435, down nearly 1% on the day. Early Asian gains erased as the pair weakens through European and US sessions. DXY rebounds to 100.50 after slipping below 100.00 amid Tuesday’s soft US CPI. The Australian Dollar (AUD) is trading near 0.6435 against the US Dollar (USD) on Wednesday, down almost 1%, after failing to break above the 0.6500 psychological level. The pair reversed sharply from the session high and has slid back into its familiar consolidation range, reflecting renewed pressure on the Aussie. The pair edged higher during the Asian session after Australia’s Q1 wage growth data beat expectations, with wages rising 3.4% YoY versus a 3.2% forecast. However, the upside was short-lived as the US Dollar regained ground in European and US trading hours. The US Dollar Index (DXY) fell below the key 100.00 mark earlier on Wednesday, extending the bearish reaction to Tuesday’s softer-than-expected US CPI data, but later recovered modestly to trade near 100.50 as traders refocused on upcoming US economic releases. Meanwhile, market expectations remain firm for a rate cut by the Reserve Bank of Australia (RBA) at its May 20 meeting, with the ASX RBA Rate Tracker indicating a 54% probability of a 50-basis point cut. This stands in contrast to the Federal Reserve’s (Fed) cautious tone, reinforcing the monetary policy divergence narrative. Looking ahead, market participants will closely monitor Australia’s upcoming employment data, including Employment Change and the Unemployment Rate, for further insights into the domestic labor market and its potential impact on the Reserve Bank of Australia’s policy outlook. At the same time, attention remains firmly on Thursday’s key US releases—PPI, retail sales, jobless claims, and a speech from Fed Chair Jerome Powell—which could shape near-term Fed rate expectations and influence the broader USD trajectory. Australian Dollar FAQs One of…

---

Filed under: News - @ May 14, 2025 10:23 pm