AUD/USD refreshes a three-week high at 0.6640 with US Inflation and Aussie Employment in focus.
Traders remain split over the size of the Fed interest-rate reduction in September.
The RBA is expected to keep its OCR steady at 4.35% by the year-end.
The AUD/USD pair hovers near a fresh three-week high at 0.6640 in Wednesday’s European session. The Aussie asset clings to gains as the US Dollar (USD) dips ahead of the United States (US) Consumer Price Index (CPI) data for July, which will be released at 12:30 GMT.
Investors will keenly focus on the US inflation data as it will influence market speculation for the size of interest-rate cuts by the Federal Reserve (Fed) in the September meeting. The CME FedWatch tool shows that traders price in a 54.5% chance for a 50 basis point (bp) rate reduction in September.
The US CPI report is expected to show that monthly headline and core inflation rose by 0.2%. Annual headline and core CPI are estimated to have decelerated by one-tenth to 2.9% and 3.2%, respectively.
Meanwhile, the market sentiment remains steady ahead of the US inflation data release. S&P 500 futures have posted nominal gains in European trading hours. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slides further below 102.50. 10-year US Treasury yields slump to near 3.84%.
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.