AUD Under Pressure as Softer CPI Scales Back RBA Hike Expectations

The Australian Dollar has come under pressure against the US Dollar following a softer than expected June Consumer Price Index (CPI) reading, which has led to markets scaling back expectations for an interest rate hike from the Reserve Bank of Australia.

AUD/USD is trading below 0.6950 after the CPI data was released, with analysts at Societe Generale pointing out that the pair has defended its March trough and 200-Day Moving Average (DMA) near 0.6900.

This technical support has resulted in a brief rebound for the AUD/USD pair, but the bias remains cautious due to a sequence of lower highs since May.