AUD Extends Rally Despite Renewed US Inflation Data
The Australian Dollar (AUD) has extended its rally for the third consecutive day, with prices rising over 0.17%. This comes despite the recent US inflation data, which saw Core PCE rise by 3.3% YoY in July.
Investors had anticipated a dip to 3.6%, but the unchanged print led to renewed hawkish bets on a rate hike by the Federal Reserve at the December 2026 meeting.
The US Dollar Index (DXY) is up 0.23% at 99.13, while US Treasury yields have also increased, with the 10-year benchmark note finishing Wednesday's session at 4.649%. Despite this, the AUD/USD pair continues to rise, trading at 0.7176.
The Australian economy's docket for the coming days includes Private Capital Expenditure for Q2 and the Reserve Bank of Australia (RBA) bulletin for the second quarter.