Australian Dollar Rises as PM Albanese Shares Last Week’s Discussion with Trump
The Australian Dollar (AUD) attempted to halt its losing streak against the US Dollar (USD) on Wednesday (13/11) following a radio interview with Australian Prime Minister Anthony Albanese. Albanese said he discussed trade with US President-elect Donald Trump during a phone call last week. Albanese told Trump that the United States has a trade surplus with Australia and stressed that Washington’s best interest is to “trade fairly” with its allies. Meanwhile, the defense minister underlined Australia’s significant investment in security.
The AUD/USD pair remained subdued following the release of weaker-than-expected Australian Wage Price Index data on Wednesday. Moreover, the pair’s downtrend was supported by optimism surrounding Trump’s trade.
The US Dollar strengthened as analysts noted that if Trump’s fiscal policies were implemented, it could boost investment, spending, and labor demand, potentially raising inflation risks. This scenario could prompt the Federal Reserve (The Fed) to consider a tighter monetary policy stance.
Traders are now focusing on the release of US inflation data due on Wednesday for further clues on future US policy. The headline Consumer Price Index (CPI) is expected to show an annual increase of 2.6% in October, with the core CPI anticipated to increase by 3.3%.
Source: FXStreet
