AUD Holds Steady near 0.7061 as US Data Weighs on Rate Hike Expectations
The Australian Dollar has maintained its value near 0.7061 after US inflation data weakened the Greenback, which recovered slightly at the end of Thursday's session.
US PPI data showed a lower reading than expected, while Initial Jobless Claims rose to 209K from 200K, but remained close to the four-week average, indicating a solid labour market.
The Federal Reserve rate hike expectations have been revised, with traders now expecting a rate increase towards the end of 2026 and a 30% probability of a hike in September, down from 70% for a hold.
Austan Goolsbee and Thomas Barkin, FOMC members, were positive about the data, while Cleveland Fed's Beth Hammack suggested raising rates to restrain growth and inflation.
Assistant Governor Christopher Kent of the Reserve Bank of Australia stated that inflation risks are on the upside and that rates would need to rise again if realised.