AUD/USD Plummets After RBA Rate Hike as Inflation Remains Elevated

The AUD/USD pair has been on a downward trend since peaking at 0.7238 earlier this month, and it continues to fall after the Reserve Bank of Australia's (RBA) fourth interest rate hike. The RBA brought interest rates to 4.60%, with Michele Bullock hinting that another hike may be needed as inflation remained elevated in August.

The monthly CPI rose from 3.5% in July to 4.2% in August, above the RBA's target range of between 2% and 3%. The AUD/USD pair is also falling as the US Dollar Index (DXY) continues its strong uptrend, reaching its highest level in weeks.

The upcoming US inflation and jobs report will be closely watched. Economists expect the private sector to have created 73k jobs after adding 38k in the previous month.