AUD/USD Plummets to Two-Week Low Amid Softer Inflation Figures
The AUD/USD pair tumbled to a two-week low on Wednesday after softer-than-expected Australian consumer inflation figures were released. Spot prices rebounded slightly from the Asian session's low but remained down around 0.25% for the day.
Despite this, the US Dollar (USD) remains under pressure ahead of the crucial FOMC policy decision later today. This has offered some support to the AUD/USD pair. However, rising inflation fears due to the escalating tensions between the US and Iran have bolstered bets for at least one rate hike by the US Federal Reserve in 2026, favoring USD bulls.
From a technical perspective, repeated failures to find acceptance above 0.7000 and the recent leg down below the confluence support of 0.6965-0.6960 could be seen as a key trigger for AUD/USD bears. The Relative Strength Index (RSI) hovers near 38, hinting at lingering downside pressure.