AUD/USD is flirting with an established range support ahead of the Fed’s event!
Earlier today, Australia’s Q4 2023 CPI come in waaay lower than the markets had expected at a 3.4% annual rate after a 4.3% reading in Q3. A 3.4% y/y quarterly CPI marks a two-year low, yo!
Not surprisingly, slower inflation upped the markets’ interest rate cut bets for the Reserve Bank of Australia (RBA). AUD lost pips against its major counterparts.
AUD/USD, in particular, found extra pressure from China’s manufacturing PMI showing further contraction and the U.S. dollar gaining ground from traders staying in the sidelines ahead of today’s FOMC statement. The pair bust through the .6600 support to trade closer to the .6570 area.
Will AUD/USD extend its downswing today?
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