AUD/USD renewes seven-month highs above 0.6800 after Australian CPI cools less than expected.
The US Dollar recovers as risk sentiment deteriorates ahead of Fedspeak and Nvidia earnings report.
AUD/USD daily technical setup points to more gains in the offing in the near term.
AUD/USD is paring back gains to trade near 0.6800 in Asian trading on Wednesday, having reversed a spike to a new seven-month high of 0.6813.
AUD/USD cheers Australian CPI data
The Aussie pair caught a fresh bid wave and recaptured the 0.6800 barrier following the Australian monthly Consumer Price Index (CPI) data release.
The inflation data showed that consumer prices in Australia cooled at a slower pace than expected in July, reporting a 3.5% YoY growth when compared to a 3.4% increase estimated and June’s 3.8% acceleration.
Hot Australian inflation data re-kindled expectations of further interest-rate hikes from the Reserve Bank of Australia (RBA), fuelling a fresh leg up in the Aussie Dollar (AUD).
However, a risk-averse market environment limited the upside in the higher-yielding Aussie while lifting the haven demand for the US Dollar (USD).
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