Australian Dollar reverses post-PCE rebound as US Dollar recovers
AUD/USD declines 0.41% on Wednesday and trades around 0.6960 at the time of writing, having fully erased its initial rebound following the release of softer-than-expected United States (US) inflation data.
The Australian Dollar experienced a reversal following its earlier rebound as the United States Dollar regained strength. This occurred after the release of softer-than-anticipated U.S. inflation data, which included a steady Personal Consumption Expenditures (PCE) Price Index at 3% YoY. The initial decline in AUD/USD occurred as investors digested stronger U.S. employment and economic growth figures, such as the ADP report of an unexpected 90,000 jobs added in September and revised GDP growth for Q2 to 2.2%.
These factors led markets to reconsider the timing of further monetary tightening, resulting in a reduction in the likelihood of a rate increase in October from nearly 51% to 35%. The AUD/USD pair now trades near two-month lows, with technical analysis suggesting a bearish near-term bias while the price remains above key support levels.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
