AUD/USD Takes Hit from Fed Hike Expectations and RBA Tightening Risks

The AUD/USD currency pair has lost momentum after a 10-week rally, as hot US inflation data revived Fed hike expectations. This development comes on top of RBA officials keeping September tightening risks alive, putting pressure on both sides of the pair.

The Australian dollar finally faltered on Thursday after a hot US PPI report added to pressure on the Fed to hike, with rising expectations leading to increased selling in AUD/USD.

AUD/USD is now targeting 0.7122 as part of a bearish breakdown, following the significant event risk posed by upcoming central bank meetings and inflation data releases.