AUD Stuck Amidst Inflation Fears and Rate Hike Expectations

The Australian Dollar (AUD) has been trading sideways against the US Dollar (USD), hovering around 0.7215 during the European session on Thursday.

Investors are eagerly awaiting the release of the August US Producer Price Index (PPI) data, which will provide valuable insights into the Federal Reserve's monetary policy outlook.

The PPI is expected to show a significant increase in price pressures, with an estimated 5.3% Year-on-Year (YoY) growth from 4.7% in July.

This week also sees the release of the US Consumer Price Index (CPI) data for August, which will further inform expectations about potential interest rate hikes.

Meanwhile, economists polled by Reuters believe that the Federal Funds Rate will remain at its current level by year-end.