The Australian dollar (AUD) continued its gains against the US dollar (USD) on Wednesday (5/14) after posting a gain of more than 1.50% in the previous session. The AUD/USD pair strengthened as the US dollar weakened following weaker-than-expected US inflation data. The seasonally adjusted Australian Wage Price Index rose 3.4% year-on-year in Q4 2025, up from a 3.2% increase in Q4 2024 and beating market expectations of a 3.2% increase. This marked a recovery from the previous quarter, which recorded the slowest wage growth since Q3 2022. On a quarterly basis, the index rose 0.9% in Q1,...
The Japanese Yen (JPY) remained firmer against its US counterpart for the second straight day on Wednesday and reacted little to a mostly in-line Producer Price Index (PPI). Bank of Japan (BOJ) Deputy Governor Shinichi Uchida's aggressive comments on Tuesday opened the door for further policy normalization and continued to act as a tailwind for the JPY. The US Dollar (USD), on the other hand, continued to weaken on Tuesday's softer US consumer inflation figures, which raised bets that the Federal Reserve (Fed) will cut interest rates at least twice this year. This was seen as another factor...
GBP/USD traded around 1.3300 during the Asian session on Wednesday (5/14), steadying after posting more than 1% gains in the previous session. However, the pair's gains may be limited as the British Pound (GBP) faces headwinds from declining employment and slowing wage growth in the UK, factors that could strengthen expectations for further interest rate cuts by the Bank of England (BoE). This week, market participants are bracing for increased volatility in the Pound Sterling, with the release of the UK's preliminary Q1 GDP and Industrial and Manufacturing Production data on Thursday. The...