Forex
AUD Holds Ground Near 0.6970 Amid Inflation Data and US Economic Uncertainty
The Australian Dollar has maintained its early recovery near 0.6970 despite mixed signals from inflation data and upcoming US economic indicators.
Inflation accelerated to 4% Year-on-Year (YoY) in August, as expected, but Commerzbank analysts argue that this reinforces the case for more interest rate hikes by the Reserve Bank of Australia (RBA), now priced at 1.5 additional rate hikes.
The US Dollar is also under pressure ahead of crucial data releases, including the ADP Employment Change and Personal Consumption Expenditure Price Index, which could impact market expectations and sentiment towards the Aussie.