The AUD/USD pair exhibits indecisiveness around 0.6300 during North American trading hours on Wednesday. The Aussie pair struggles for direction after the release of the Australian Monthly Consumer Price Index (CPI) data for February, which showed that inflation has cooled down.
The inflation data rose at a slower pace of 2.4% compared to estimates and January's reading of 2.5%. Technically, soft inflation data should have boosted market expectations that the Reserve Bank of Australia (RBA) could cut interest rates again in the April meeting. However, traders would also discount the expansionary fiscal budget unveiled by Treasurer Jim Chalmers on Tuesday, which is expected to be inflationary for the Australian economy.
The major highlight of the budget was a progressive reduction in personal taxes for individuals' earnings between $18,201 and $45,000 for the next three years. The administration announced an additional $1.8 billion in energy bill relief, supporting households against high inflation.
In the February meeting, the RBA reduced its Official Cash rate (OCR) by 25 basis points (bps) to 4.10%, and RBA Governor Michele Bullock guided a ‘gradual and cautious' monetary policy easing in the February policy meeting.
Meanwhile, the US Dollar (USD) ticks higher but trades in a limited range amid uncertainty over how tariffs by United States (US) President Donald Trump will shape the domestic outlook. Trump is poised to unveil reciprocal tariffs on April 2. However, he has indicated that a few nations could get tariff breaks.
On the economic data front, investors await the US Personal Consumption Expenditure Price Index (PCE) data for February, which will be released on Friday. Economists expect the US core PCE inflation, which is the Federal Reserve's (Fed) preferred inflation gauge, to have grown at a faster pace of 2.7% year-on-year, compared to the 2.6% increase seen in January.
Source: Fxstreet
The Australian Dollar (AUD) loses ground on Wednesday for the second consecutive day. The AUD/USD pair struggles as the US Dollar (USD) extends its gains despite the United States (US) Nonfarm Payroll...
The Australian Dollar (AUD) is under pressure against the US Dollar (USD) on Thursday, with AUD/USD down almost 0.50%, trading near 0.6510 at the time of writing. The pullback reflects broad Greenback...
The Australian dollar was little changed to around $0.654 on Thursday, holding its recent gains, supported by stronger-than-expected trade balance figures. Australia's goods trade surplus widened to A...
The Australian dollar was little changed to around $0.652 on Wednesday, after a 0.5% drop in the previous session, as strength in the US dollar offset upbeat domestic GDP data. The greenback held firm...
The Australian dollar weakened to around $0.654 on Tuesday, snapping a five-session winning streak, as investors paused amid a mix of domestic economic signals. Notably, Australia's current account de...
World oil prices recorded a slight decline in trading on Wednesday (September 10th) despite escalating geopolitical tensions in the Middle East. Prices briefly surged nearly 2% following Israel's attack on Qatar, but the gains were...
The US dollar held steady early in the Asian session after the PPI data fell 0.1% in August, reinforcing expectations that the Fed would cut interest rates next week. The Dollar Index edged up to 97.822, marking a third consecutive day of gains....
Gold held steady just below its record, around $3,645/oz, after an unexpected decline in US producer prices (PPI) fueled hopes of Fed policy easing. The market now awaits the release of US CPI data Thursday evening (WIB) for confirmation of the...
The United States (US) Bureau of Labor Statistics (BLS) will publish the 2025 preliminary benchmark revision to the Establishment Survey Data on...
Russian forces attacked a thermal power plant in the Kyiv region as part of an overnight attack, Ukraine's Energy Ministry said on Monday,...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...