AUD/USD trades sideways below 0.6700 for more than two weeks.
The RBA could tighten its monetary policy further as disinflation appears to have reversed.
Investors await the US ADP Employment Change and the ISM Services PMI for June.
The AUD/USD pair stays in a tight range below the immediate resistance of 0.6700 from almost three weeks. The upside in the Aussie asset appears to be restricted as the Reserve Bank of Australia (RBA) has not leaned strongly towards raising interest rates further despite price pressures appear to have revamped again.
Australia’s Monthly Consumer Price Index (CPI) has been accelerating for the last three months after progress in the disinflation process stalled in the December-February period. In May, the inflation measure grew strongly by 4.0% from expectations of 3.8% and the prior release of 3.6%.
Meanwhile, the US Dollar (USD) remains on the backfoot as financial markets expect the Federal Reserve (Fed) to start reducing interest rates after the September meeting. According to 30-day Federal Funds pricing data from the CME FedWatch tool, the Fed is also expected to deliver two rate cuts this year.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.