The AUD/USD pair appreciates as US data reinforce the likelihood that the Fed will lower interest rates next week.
The US Producer Price Index rose above expectations, driven by higher service costs.
Fed is expected to deliver a 25-basis points interest rate cut at its September meeting.
The AUD/USD extends its upside for the third successive session on Friday as economic data from the United States (US) reinforced the possibility that the Federal Reserve (Fed) would lower interest rates next week.
The US Labor Department reported that Initial Jobless Claims for the previous week increased as anticipated, surpassing the previous week’s figures. Additionally, US factory inflation rose above expectations, driven by higher service costs.
August’s US Consumer Price Index (CPI) data showed that headline inflation dropped to a three-year low, although core inflation exceeded expectations. This development has heightened the likelihood that the Federal Reserve (Fed) will begin its easing cycle with a 25-basis points interest rate cut in September. Investors shift their focus to the Michigan Consumer Sentiment Index, which is scheduled for Friday.
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