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AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.
USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.
Gold remains depressed for the fourth straight day, flirting with the weekly low during Wednesday’s Asian session, with bears awaiting a sustained break below $4,100 before placing fresh bets. Energy-driven inflation fears keep Fed hike bets firmly on the table, reviving US Dollar demand and undermining the non-yielding bullion. However, an unconfirmed report of US-Iran diplomacy could cap the safe-haven buck, which could offer some support to the precious metal.
The United Kingdom Office for National Statistics is expected to release September’s Consumer Price Index on Wednesday at 06:00 GMT. These figures will be accompanied by the Producer Price Index and the Retail Sales report.
