The AUD/USD pair is experiencing selling pressure near 0.6715 during Thursday’s early Asian session, influenced by a stronger U.S. Dollar (USD) and concerns over Chinese demand. Investors are awaiting key U.S. Consumer Price Index (CPI) inflation data, set to be released later today.
The FOMC minutes from the September meeting indicated that a significant majority of members supported a 50-basis-point rate cut, with some favoring a 25-bps cut instead. The robust U.S. jobs report from last week alleviated concerns about a slowing labor market, prompting traders to increase expectations for a quarter-point rate cut in November, thereby strengthening the USD.
For today’s CPI data, analysts predict a decline in headline inflation from 2.5% in August to 2.3% in September, while core inflation is expected to remain steady at 3.2% year-on-year. A softer-than-expected inflation reading could lead to expectations of a more aggressive easing cycle by the Fed, potentially applying downward pressure on the USD.
On the Australian side, disappointment regarding China’s stimulus efforts and the firm USD continue to weigh on the Australian Dollar (AUD). However, the Reserve Bank of Australia‘s (RBA) hawkish stance, bolstered by stronger-than-expected retail sales growth in August, may limit further declines in the AUD/USD pair.
Related Topics:
