Australian Dollar holds firm as hotter US inflation fails to cement Greenback's advantage
AUD/USD is edging higher today but is yet to retake the 0.7200 mark on Friday. The pair is clawing back part of the previous session's sharp sell-off after hitting multi-month highs in the high 0.7200s.
The Australian Dollar has held steady against the US Dollar, despite hotter-than-expected US inflation data that would typically weaken the Aussie. US core CPI data came in stronger than forecast in August, suggesting a potential Federal Reserve rate hike at their upcoming meeting. However, the US Dollar has struggled to capitalize on this data due to a growing policy premium in the US, which has weakened the traditional links between US policy and the value of the dollar.
This cautiousness among investors, along with concerns over the fiscal outlook and efforts to hold down long-term borrowing costs, has helped the Australian Dollar maintain its ground against the US Dollar. The technical analysis indicates that AUD/USD is currently trading near the 0.7178 level, with support at 0.7165 and 0.7154, and resistance at the 0.7199 and 0.7188 levels.
Brief written by urgent.news from FXStreet's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- Japanese Yen rises as the Greenback's inflation bounce fades fxstreet.com
- Dollar edges higher against euro after US inflation data businesstimes.com.sg
- Dollar edges higher against euro after US inflation data channelnewsasia.com
