AUD/USD slides to near 0.6740 as the US Dollar gains ground after Fed Powell’s speech.
Fed Powell reiterated the need of more good inflation data for reducing interest rates.
Investors await the US Retail Sales and the Aussie Employment data.
The AUD/USD pair drops sharply to 0.6740 in Tuesday’s European session. The Aussie asset declines as the US Dollar (USD) manages to get firm-footing as Federal Reserve (Fed) Chair Jerome Powell recognized the need of more soft inflation for policymakers to gain greater confidence before cutting interest rates in his speech at the Economic Club of Washington on Monday.
However, Fed Powell acknowledged that the central bank has made some progress on inflation in the second quarter. Powell said, "We've had three better readings, and if you average them, that's a pretty good place," Reuters reported. His comments on progress in disinflation fuelled confidence that rate cuts are not so far.
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