AUDUSD is trading lower as Australia’s inflation remains disappointing.
AUDUSD is reversing a two-day gaining streak, trading at 0.6460 at the time of writing during Wednesday’s European session. The pair is under pressure as a result of Australia’s disappointing macroeconomic data announced early Wednesday.
The Australian CPI fell to a 17-month low, and investors anticipate no interest rate rise by the RBA.
In Australia, inflation fell to a 17-month low in July. Which might force the Reserve Bank of Australia (RBA) to maintain interest rates steady at its forthcoming policy meeting. As previously stated, Australia’s MonthlyThe Consumer Price Index (CPI) reported. That inflation fell to 4.9% (YoY) in July, lower than the 5.2% expected and the prior estimate of 5.4%. While Building Permits (MoM) fell 8.1% in July, compared to a predicted 0.8% drop and a 7.7% drop the prior month.
The US dollar (USD) fell as a result of dovish sentiment around the Fed’s policy announcement.
The US Dollar Index (DXY), which measures the performance of the US Dollar (USD) versus six other major currencies, has recovered from its two-day losses. And is presently trading higher at 103.70. US Treasury rates have recovered from recent losses. Lending support to the US dollar. However, the current dovish view toward the US Federal Reserve’s (Fed) policy stance is helping to undermine the safe-haven US Dollar (USD).
AUDUSD Investors will be watching US Data.
AUDUSD Investors will be watching US Data with bated breath. Data to have a better grasp of the economic trajectory of the United States (US). This emphasis was sparked by Fed Chairman Jerome Powell’s remarks at the Jackson Hole Symposium. Which emphasized that any future interest rate decision will be influenced by data-driven research.
The macroeconomic calendar is packed with important events on Wednesday, including the release of the August ADP Employment Change numbers and the preliminary Gross Domestic Product Annualized data for the second quarter (Q2). These datasets will be crucial in developing strategies prior to opening fresh trades on the AUDUSD pair.
