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The AUD/USD stopped the bleeding and jumped off weekly lows at around the 0.6700 figure after the US Producer Price Index report for August eased some of Tuesday’s CPI worries, which sent most risk assets to the red territory, while the US dollar rose above the 110.00 thresholds, on renewed inflation fears. Nevertheless, as of writing, sentiment is mixed, though it appears that traders are in wait-and-see mode.
On Wednesday, the major began trading at around 0.6720s and edged toward its weekly lows nearby the 0.6700 figure, forming a double bottom as shown by the AUD/USD hourly chart, and climbed towards its daily high at 0.6760. At the time of writing, the AUD/USD is trading at 0.6737, above its opening price by 0.17%.
US inflation data has been grabbing all the headlines in the last couple of days. On Tuesday, August, core CPI edged above the 7% YoY threshold above estimations, fueling speculations that the Fed might lift rates 100 bps in the September meeting. Nevertheless, August’s PPI has tempered concerns, with figures coming aligned with estimations and flashing positive news regarding supply chain disruptions.
The reflection of the abovementioned is the US Dollar Index, losing some traction, down by 0.09%, below the 110.000 mark. At the same time, the US 10-year benchmark note rate shows signs of exhaustion, flat at around 3.414%.
