AUD/USD Jumps to Test 15-Month Highs

AUD/USD is trying to test 15-month highs at 0.7183 for the third consecutive session on Wednesday with support from selling-off in the US dollar. The Australian dollar bounced from its daily low of 0.7149 for a short period after the CPI data came in against expectations in the Q2 in Australia. The data came in at -0.1% compared to the previous quarter + 0.1% with the Australian dollar affected by the increasing Covid-19 cases.

The bulls quickly regained control as the US currency fell near two-year lows and remains weak against major competitors with the dwindling economic recovery in the United States and an increase in Covid-19 cases.

The Federal Reserve ends its two-day meeting on Wednesday and it could hint at a more pessimistic stance amid prospects for economic growth faltering as markets fear that the Fed will push real interest rates deep in negative territory alongside declining US consumer confidence.