Forex
AUD Falls Amid Hawkish Fed Tone and Strong US Inflation Data
The Australian Dollar (AUD) declined by 0.80% against the US Dollar on Thursday, following strong US producer inflation data and a hawkish Federal Reserve tone.
The AUD/USD pair peaked at 0.7223 but closed at 0.7159 after US August PPI data exceeded estimates, driven by energy prices.
Excluding volatile items, the core PPI undershot forecasts with a 0.2% MoM increase. However, the annual headline rate jumped to 5.4%, surpassing expectations of 5.3%.
The US Federal Reserve has been priced in at a 71% chance of hiking interest rates by 25 basis points at next week's meeting, according to the CME FedWatch Tool.