AUD/USD Consolidates Near Three-Year Highs Ahead of Crucial Australian CPI Data
Key Facts
- •Traders are awaiting the monthly Australian CPI report to determine the next interest rate path.
- •The RBA hiked the Cash Rate by 25 bps to 3.85%, signaling more hikes by year-end.
- •The US dollar weakened temporarily following a US Supreme Court ruling on Trump's reciprocal tariffs.
- •Fed's Waller emphasized the importance of next week's Non-Farm Payrolls (NFP) report.
The AUD/USD pair is currently consolidating just below its three-year highs as market participants await the release of the monthly Australian Consumer Price Index (CPI) report. This inflation data is expected to be a decisive factor for the Reserve Bank of Australia (RBA), which recently raised rates to 3.85% while signaling potential further tightening. Concurrently, the US Dollar has faced headwinds following a Supreme Court ruling regarding reciprocal tariffs linked to Donald Trump's trade agenda. Federal Reserve Governor Christopher Waller has also emphasized the importance of next week's Non-Farm Payrolls (NFP) report for the US monetary path. The Australian Dollar needs robust CPI figures to maintain its bullish momentum and break through significant technical resistance levels. Investors remain focused on these high-impact catalysts to gauge the policy divergence between the RBA and the Federal Reserve.
freemium.freemium.cta.signup
freemium.freemium.cta.signup_button