Forex
AUD Reverses Post-PCE Gains as Stronger US Data Boosts USD
The Australian Dollar (AUD) declined by 0.41% on Wednesday and traded at around 0.6960 as of writing, reversing its initial post-PCE rebound following the release of softer-than-expected US inflation data.
The US Personal Consumption Expenditures (PCE) Price Index showed that annual headline inflation remained unchanged at 3.4% in August, below the 3.7% expected by markets.
The core PCE Price Index, which excludes volatile food and energy components, also remained steady at 3% YoY, below the 3.3% market forecast.
A stronger US employment report from Automatic Data Processing (ADP) showed private-sector employment increased by 90K jobs in September, exceeding expectations for a 70K rise.