Australian Dollar holds gains following China’s CPI data
AUD/USD rises after two days of losses, trading around 0.6890 during Asian hours on Monday. The pair appreciates as the Australian Dollar (AUD) remains stronger following the release of Consumer Price Index (CPI) data from China, Australia’s close trading partner.
The Australian Dollar gained strength following China's latest Consumer Price Index (CPI) data, which showed a higher-than-expected inflation rate. China's CPI rose 0.7% in October, up from a 0.9% increase in September, exceeding market expectations of 0.8%. While the US Dollar (USD) also declined during this period, the AUD/USD pair climbed to around 0.6890 during Asian trading hours on Monday.
Analysts suggest that the recent market turbulence has led to a flight to quality, with investors seeking the safety of US Treasuries and reconsidering the need for further rate hikes. The recent extension of the 24% tariffs suspension on US goods and reduced tensions between the US and Iran have also contributed to the Australian Dollar's recovery.
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