AUD/USD jumps to near 0.6800 as soft US inflation boosts Fed rate-cut bets.
US annual headline and core inflation decelerated sharply in June.
The RBA may cut interest rates next year.
The AUD/USD pair jumps close to the crucial resistance of 0.6800 in Thursday’s American session. The Aussie asset strengthens as the US Dollar (USD) plunges after the United States (US) Consumer Price Index (CPI) report showed that inflationary pressures cool down again in June. This has prompted expectations for the Federal Reserve (Fed) to start reducing interest rates from the September meeting.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, tumbles to near 104.00.
US annual core inflation, which excludes volatile food and energy prices, came in lower at 3.3% than estimates and May’s reading of 3.4%. In the same period, the headline inflation decelerated at a faster pace to 3.0% from expectations of 3.1% and the former release of 3.3%.
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