Bullish
AUD/USD rises to 0.6985 as US inflation data dampens Fed rate hike expectations
The Australian Dollar strengthened against the US Dollar, with AUD/USD reaching 0.6985, following weaker-than-expected US inflation data. This development reduced market expectations for further Federal Reserve rate hikes, bolstering the appeal of risk-sensitive currencies like the AUD.
Key points
- US Consumer Price Index (CPI) for June eased to 3.5% year-over-year, down from 4.2% in May, tempering expectations for aggressive Fed tightening.
- US Producer Price Index (PPI) declined by 0.3% month-over-month in June, indicating easing inflationary pressures.
- Chinese economy grew by 0.9% quarter-over-quarter in Q2 2026, aligning with market expectations and providing mixed signals for AUD/USD.
Sources
AI-generated from public news sources. Not financial advice.
