AUD/USD recovers sharply from 0.6820 as the Australian Dollar strengthens.
Investors await Fed Powell’s speech for fresh interest rate guidance.
The core PCE inflation is expected to have accelerated to 2.7% in August.
The AUD/USD pair bounces back strongly from Wednesday’s low of 0.6820 to near the round-level resistance of 0.6900 in Thursday’s North American session. The Aussie asset strengthens amid upbeat Australian Dollar (AUD).
The Aussie Dollar performs strongly as the Reserve Bank of Australia (RBA) is expected to leave interest rates at their current levels for the entire year. In the monetary policy on Tuesday, the RBA kept its Official Cash Rate (OCR) steady to 4.35% and conveyed that the option of more rate hikes was not on the table.
Meanwhile, the US Dollar (USD) exhibits a sluggish performance near the crucial resistance of 101.00. The US Dollar struggles to extend recovery as investors look for Federal Reserve (Fed) Chair Jerome Powell’s speech to get fresh cues on the interest rate outlook.
Currently, financial market participants expect that the Fed could deliver one another 50 basis points (bps) interest rate cut in November. Last week, the Fed started the policy-easing cycle with a larger-than-usual interest rate cut of 50 bps to 4.75%-5.00%.
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