AUD Tumbles Against USD as Investors Eye Key CPI Data
The Australian Dollar (AUD) lost some ground against the US Dollar (USD) on Tuesday, dipping by 0.13% to near 0.7210 during the European trading session.
The Aussie pair came under pressure as the US Dollar turned positive after a weak start. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, rose by 0.1% to near 99.00.
Investors are awaiting the United States' Consumer Price Index (CPI) data for August, set to be released on Friday. According to TD Securities, the August CPI report is likely to show core inflation contained, with core prices rising 0.19% month-over-month and 2.3% year-over-year.
TD also expects headline CPI to post a stronger 0.37% month-over-month and 3.4% year-over-year due to rising energy prices and a slight pickup in food inflation. However, the bank cautions that risks to its forecasts are skewed to the upside.