AUD Holds Ground After Slight Recovery Amid Interest Rate Hike Expectations

The Australian Dollar (AUD) held its ground against the US Dollar (USD) on Wednesday, recovering slightly to near 0.6972 from the day's low of 0.6960 during early European trading.

This move comes after the release of Australia's Consumer Price Index (CPI) data for August, which showed price pressures accelerated further with a year-on-year reading of 4%, as expected, and a monthly growth rate of 0.4%.

The Reserve Bank of Australia (RBA) has signaled that it will continue to raise interest rates if necessary to bring inflation back to target, with Governor Michele Bullock stating that the door for more hikes this year remains open.