AUD/USD Under Pressure Amid Hawkish Fed Commentary
The Australian Dollar (AUD) is facing pressure as it trades down 0.15% against the US Dollar (USD) at around 0.7100 in early European trading on Wednesday.
The US Dollar has extended its advance, with Federal Reserve board members delivering hawkish commentary on interest rates and warning of persistent inflation risks.
Austan Goolsbee, Chicago Fed President, warned that supply shocks combined with strong spending and AI-related investment could keep inflation persistent, while St. Louis Fed President Alberto Musalem reinforced the hawkish message by arguing that front-loaded gradual tightening is preferable and policy remains accommodative.
The AUD/USD pair is currently holding just above the 38.2% Fibonacci retracement at 0.7097 but still capped by the 20-period exponential moving average (EMA) at 0.7135, suggesting a consolidative to slightly bearish near-term tone.