Australian Dollar Climbs Despite Soft CPI as Dollar Weakens Post-Fed
AUD/USD advanced 0.82% to around 0.7010 on Thursday, brushing off softer-than-expected Australian inflation as broad-based US dollar selling dominated.
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The Australian dollar strengthened against the greenback even after domestic consumer price data came in below forecasts. Traders focused instead on the sharp decline in the US dollar, which was pressured by a more cautious Federal Reserve outlook and a batch of disappointing US economic figures.
The move pushed AUD/USD to the 0.7010 area, marking a solid daily gain of 0.82%. Market participants largely ignored the soft CPI print as expectations for aggressive Fed tightening continued to fade.
Source: FXStreet Forex News