AUD/USD hit fresh four-month highs at 0.7237 on broad USD weakness and China August CPI 0.4% m/m, then eased near 0.7220 as Gulf hostilities and rallying oil capped the Aussie.
The Australian Dollar resumed its uptrend on Wednesday as a softer US Dollar and a rebound in Chinese inflation eased demand worries, before Gulf risk capped the move.
AUD/USD hit fresh four-month highs at 0.7237, but returned to previous ranges around 0.7220 shortly afterwards. The pair drew support from a weak Greenback trading lower across the board ahead of Friday’s US CPI.
China August CPI bounced to 0.4% month-on-month after a 0.1% July contraction, beating the 0.3% expectation; year-over-year CPI accelerated to 0.8% from 0.5%, in line with forecasts. RBA Deputy Governor Andrew Hauser’s Tuesday call for more action on inflation has markets, per Rabobank, “thinking of hikes this month and in November.”
Escalating Middle East hostilities and rallying oil are likely to limit Aussie rallies — Iran’s Tuesday attack on a US Navy warship and a Jordan airbase, US hits on Iranian oil tankers in Hormuz, and Houthi strikes on Saudi oil facilities. Soft prior oil tapes: WTI EU ~$92.70 and Asia Brent-near-$100 wire split.
Follows Asia’s AUD/USD ~0.7210 four-day streak halt.
Informational only. Not trading advice, signals, or a guarantee of any market outcome.
Written and fact-checked with AI assistance, reviewed by a human editor before publication.
No comments yet. Be the first to share your view.
EUR/USD nudges above 1.1640 to 12-day highs on broad USD weakness ahead of Thursday’s ECB meeting, widely seen delivering a quarter-point hike to 2.5%.
GBP/JPY hits session lows near 207.50 at the London open as the Yen rallies ahead of next week’s BoJ meeting. Tuesday’s rebound from YTD lows at 207.10 was capped near 209.00.
AUD/USD trades near 0.7230 (chart 0.7229) in Europe after hawkish Hauser remarks. Four-year high stamps 0.7277 and headline 0.7280 quoted separately.