AUD/USD climbs to three-week high, around mid-0.6400s amid sustained USD selling – by hareshmenghani AUDUSD CPI RBA Fed Currencies
also marks the fourth day of a positive move in the previous five and lifts spot prices to a nearly three-week high, around the 0.6450-0.6455 region in the last hour.
The US dollar remains under some selling pressure amid reduced bets for a more aggressive tightening by the Fed, which, in turn, is seen as a key factor pushing the AUD/USD pair higher. In fact, the softer US macro data released on Tuesday pointed to signs of a slowdown in the world's largest economy and might force the US central bank to soften its hawkish stance. This is reinforced by a further pullback in the US Treasury bond yields and keeps the USD bulls on the defensive.
The Australian dollar, on the other hand, draws additional support from hotter-than-expected domestic consumer inflation figures. The Australian Bureau of Statistics reported that the headline CPI rose 1.8% in the September quarter and the annual rate shot up to 7.3% - the highest since 1990.