The Australian Dollar remains weaker due to risk aversion following the attempted assassination of Donald Trump.
The AUD/USD pair may limit its downside as persistently high inflation prompts the RBA to maintain a hawkish stance.
CME Group’s FedWatch Tool indicates an 85.7% probability of a 25-basis point cut in September, up from 71.0% a week earlier.
The Australian Dollar (AUD) continues to decline for the second consecutive session on Tuesday. The AUD/USD pair loses ground due to a modest rebound in the US Dollar (USD), which could be attributed to increased risk aversion following the attempted assassination of former US President Donald Trump on Saturday. Investors are also looking ahead to the US June Retail Sales data, which are set to be released later today, for further insights.
The AUD/USD pair remains close to its strongest levels as speculation grows that the Reserve Bank of Australia (RBA) might delay joining the global rate-cutting cycle or even raise interest rates again. Persistently high inflation in Australia prompts the RBA to maintain a hawkish stance. In contrast, cooling US inflation strengthened bets for a Federal Reserve rate cut in September.
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