AUDUSD Extends Rally on Inflation Surprise with RBA Hike Bets Intact

The Australian Dollar continued its upward momentum against the US Dollar for the second consecutive session, nearing the 0.7170 region after Australia's July headline Consumer Price Index (CPI) inflation rose 3.5% year-over-year, beating expectations of 3.2%

This development keeps the possibility of further Reserve Bank of Australia (RBA) tightening in play, supporting the Australian Dollar and reinforcing its bullish bias against the US Dollar

The US Dollar softens as bond yields fall and rate-hike expectations ease ahead of the upcoming US Personal Consumption Expenditures (PCE) Price Index release for fresh direction