Forex
AUD/USD Rally Falters Amid Rising US Inflation Expectations
The Australian dollar's 10-week rally against the US dollar has stalled due to hot US inflation data, which has increased expectations of a Federal Reserve interest rate hike.
The release of producer and consumer prices in August added pressure on the Fed to raise rates, with markets now pricing an 87% chance of a 25-basis-point hike this week.
Rising crude oil prices have further complicated the inflation outlook, leaving little reason for the Fed not to hike at this stage.