Australian Dollar edges lower to near 0.6900 on Fed hike bets
Trending Articles- $4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US Dollar
- Gold Price Trend Forecast: Gold Price Risks Falling Below $4,000, PCE Data Is Key
- Bitcoin network activity hits new high despite stalled prices — CryptoQuant
- WTI Price Forecast: Trades above $75.50 on Iran uncertainty; 200-day SMA holds the key
- Deutsche Bank Slashes Gold Price Forecast by 22%: Wall Street Bulls Retreat, Fed Rate Hike Expectations Become Biggest Drag
- Qatar and Pakistan: High-level committee agrees on roadmap to final deal within 60 days
AUD/USD softens to near 0.6900 in Friday’s early Asian session.
The US headline PCE price index climbed 4.1% YoY in May; core PCE advanced 3.4% YoY.
Australia's Unemployment Rate fell to 4.4% in May, fueled by a sharp rebound in hiring.
The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year. The release of the Michigan Consumer Sentiment Index report will be the highlight later on Friday.
US inflation increased further in May, with the headline Personal Consumption Expenditures (PCE) Price Index climbing 4.1% YoY, compared to 3.3% in April, the US Bureau of Economic Analysis (BEA) showed on Thursday. This report keeps the interest rate increase from the Federal Reserve (Fed) this year on the table.
Meanwhile, the core PCE, the Fed’s primary price gauge, rose 3.4% YoY in May, versus 3.3% prior. The annual core PCE reading was the highest since October 2023.
"PCE price inflation remains too high and will keep the Fed on hold and mulling a potential rate hike at upcoming meetings," said Scott Anderson, chief U.S. economist at BMO Capital Markets. "Services inflation ... will not be easily tamed by falling energy prices. The fight between the hawks and the doves is sure to remain intense,” he added.
On the other hand, the latest Australian employment data might help limit the Aussie’s losses. The country’s Unemployment Rate fell to 4.4% in May from 4.5% in April, according to the Australian Bureau of Statistics (ABS) on Thursday. The figure came in line with the market consensus.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
