- AUD/USD has sensed a correction from 0.7500 ahead of Australia’s jobless rate.
- Investors are shrugging off higher US inflation print, interest rates seek a decent hike.
- A preliminary estimate of Australia’s Unemployment Rate at 3.9% indicates an outperformance.
The AUD/USD pair has witnessed a minor pullback at around 0.7500 after a decent bullish reversal from Tuesday’s low at 0.7400. The major has bounced back after the disclosure of US inflation on Tuesday. A print of 8.5% US Consumer Price Index (CPI) was highly expected by the market participants, which has brought some bids in the antipodean.
Multi-decade high inflation and higher participation rate in the US labor market are signaling a significant interest rate hike in May’s monetary policy. Price pressures from the core goods are hurting the US economy, which is visible from a moderate performance of US CPI ex-food and energy. The US inflation excluding the food and energy items has been recorded at 6.5%, in a mid of market estimate and prior figure.
Earlier, the asset eased sharply from last week’s high at 0.7662 after the Reserve Bank of Australia (RBA) kept the interest rate unchanged and adopt a ‘wait and watch’ approach. The insights from the RBA’s monetary policy indicated that the administration has yet not felt any constructive price pressures, which could push the interest rates higher.
For further guidance, the market participants will keep an eye on the Aussie’s Unemployment Rate, which is due on Thursday. A preliminary estimate of Australia’s jobless rate indicates a slippage to 3.9% from the prior print of 4%.
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