AUD/USD Price Forecast: Holds slight recovery from 0.6960
The Australian Dollar (AUD) holds its recovery move to near 0.6972 from the day’s low of 0.6960 against the US Dollar (USD) during the early European trading session on Wednesday. However, the Aussie pair is still 0.18% down from its Tuesday’s closing price of 0.6985.
The Australian Dollar (AUD) has rebounded slightly from its lowest point of the day, 0.6960, settling near 0.6972 against the US Dollar (USD) during early European trading on Wednesday. However, the currency remains 0.18% lower than its closing price on Tuesday, which was 0.6985. The Australian Dollar's support comes after the release of Australian Consumer Price Index (CPI) figures for August, which indicated that inflationary pressures have intensified.
The year-over-year (YoY) CPI data for August came in at 4%, as expected, exceeding the 3.55% increase observed in July. On a monthly basis, inflationary growth decelerated to 0.4%, matching forecasts from the previous reading of 1%. The prospect of additional interest rate hikes by the Reserve Bank of Australia (RBA) this year has been bolstered by these inflationary indicators.
On Tuesday, RBA Governor Michele Bullock indicated that the likelihood of further hikes remains open. So far in 2026, the RBA has increased its Official Cash Rate (OCR) four times, reaching 4.6%. MUFG noted following the meeting that the RBA conveyed its commitment to "continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if needed."
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