AUD/USD Breaks Through 0.6500, Boosted by Australian CPI
The AUD/USD extended gains to around 0.6505 during Thursday's Asian session. The Australian dollar strengthened as higher-than-expected monthly inflation data reduced bets of an imminent RBA interest rate cut. The market is also awaiting the second estimate of US second-quarter GDP, released tonight.
The Australian Bureau of Statistics reported that July CPI rose 2.8% year-on-year, from 1.9% in June and above the consensus of 2.3%—the highest since July 2024. This warmer data signals persistent price pressures, supporting the AUD.
Consequently, the chances of an RBA rate cut in September are considered slim. Analysts expect the board to wait until November, after the release of the third-quarter CPI on October 29, before assessing the scope for further easing.
On the US dollar, concerns persist about the Fed's independence after President Donald Trump announced the firing of Governor Lisa Cook, potentially weighing on the greenback. However, if tonight's US GDP exceeds estimates (3.1% annualized), the dollar could strengthen temporarily and restrain AUD/USD's gains. (ayu)
Source: Newsmaker.id