Australian Dollar is rising against the US Dollar after the latest US inflation data showed a decline in the CPI.
RBA’s Hunter spoke about Australia's labor market, highlighting that it is still tight relative to full employment.
As the RBA remains hawkish, the AUD/USD pair’s upside is open.
The AUD/USD rose by 0.25% to 0.6670 on Wednesday as markets reacted to the release of US inflation data and comments from the Reserve Bank of Australia (RBA). The US Consumer Price Index (CPI) showed a decline in the annual rate of price increases, raising hopes that the Federal Reserve (Fed) may slow the pace of interest rate hikes.
In the face of a complex economic outlook, the Reserve Bank of Australia's (RBA) aggressive stance against high inflation has tempered market expectations. With inflation remaining elevated, investors now anticipate a more gradual easing of monetary policy, forecasting only a 0.25% interest rate reduction by 2024.
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