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The Australian Dollar remains under selling pressure in Thursday’s Asian session.  The firmer USD and lack of further China’s stimulus measures drag the pair lower.  The US CPI inflation data will be in the spotlight on Thursday. The Australian Dollar (AUD) extends its decline on Thursday. The stronger US Dollar (USD) amid rising speculation of a 25 basis points (bps) rate cut by the Federal Reserve (Fed) in November undermines the Aussie. Furthermore, Beijing’s attempt to stimulate the world’s second-largest economy disappointed investors as China’s top economic planning authority failed to announce additional measures to improve flagging growth. It’s worth noting that China is a major trading partner to Australia, and concerns about China’s sluggish economy tend to have a negative impact on the AUD value. Investors will closely monitor the key US Consumer Price Index (CPI) inflation data, which is due later on Thursday. The headline US CPI is expected to show an increase of 2.3% YoY in September, while the core CPI inflation is estimated to show a rise of 3.2% YoY in the same report period. However, in case the report shows a softer-than-expected outcome, this could open the door for a jumbo Fed rate cut, which might weigh on the USD and cap the downside for AUD/USD.  Daily Digest Market Movers: Australian Dollar softens ahead of US CPI data RBA Minutes from the September meeting showed board members overlooked the warning that there would be no rate cuts in the near future. The Australian central bank wants to keep its options open, watching whether the economy starts to pick up in the second half of the year.  “This leaves the door open to a shift to neutral by the end of this year and then easing in early 2025. We continue to expect the first cash…

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Filed under: News - @ October 10, 2024 1:18 am