AUD/USD falls to near 0.6650 as the US Dollar rises further ahead of the US inflation data for August.
Investors see the US core PCI to have grown steadily by 3.2%.
Australian Westpac consumer sentiment declined in September after expanding previously.
The AUD/USD pair falls to near 0.6650 in Tuesday’s North American session. The Aussie asset drops as the US Dollar (USD) extends its recovery, with investors focusing on the United States (US) Presidential debate between Vice President Kamala Harris and former President Donald Trump over the November elections. The Harris-Trump presidential debate will have a significant impact on the US Dollar.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to near 101.70 and approaches a two-week high of 102.00.
The appeal of the US Dollar would strengthen further if the outcome of the presidential debate shows signs of Trump winning the elections. Donald Trump is known for advocating raising tariffs and higher fiscal spending, which would be favorable for the US Dollar.
Market participants will keenly focus on the US inflation data as it would influence expectations for the Federal Reserve (Fed) interest rate decision next week. The Fed is widely anticipated to start reducing interest rates but investors remain uncertain over the potential interest rate cut size.
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