AUD/USD Rises Modestly Amidst Uncertain Outlook

The AUD/USD pair saw a modest rise after investors bought the dip following last week's Federal Reserve interest rate decision, which was unanimous. The decision to hike interest rates by 0.25% came due to rising inflation, with the headline Consumer Price Index (CPI) increasing 3.4% in August, higher than the 2% target.

Core inflation has remained high in recent months, and the challenge is whether rate hikes will lower inflation. The ongoing US-Iran crisis and fighting between Saudi Arabia and Ansar Allah have led to high petrol and diesel prices, which are expected to remain high in the foreseeable future.

This week's focus will be on Australia, where jobs numbers are due out on Thursday. Economists expect the data to show that the economy created 29k jobs last month after shedding 15k jobs a month earlier.