AUD/USD jumps to near 0.6630 even as US Dollar trades firmly
- AUD/USD climbs to near 0.6630 as the Australian Dollar outperforms its peers.
- Fed’s Powell signals caution on further interest rate risks.
- Australia’s Monthly CPI grew at a faster pace of 3% in August.
The AUD/USD pair climbs to near 0.6630 during the European trading session on Wednesday. The Aussie pair strengthens, even as the US Dollar (USD) trades firmly, following comments from Federal Reserve (Fed) Chair Jerome Powell on Tuesday in which he reiterated caution on further interest rate cuts.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.4% higher to near 97.60 at the time of writing.
Fed Chair Powell signaled caution on further monetary policy expansion as risks to inflation have remained tilted on the upside, while labor market risks remain higher. He added that the current interest rate range leaves us “well positioned to respond to potential economic developments”.
Last week, Fed’s Powell also stated in the press conference following the monetary policy announcement that he doesn't feel the need to move “quickly” on rates.
On the contrary, Fed Governor Michelle Bowman argued in favor of reducing interest rates quickly to prevent a further slowdown in the job market. "It’s a lot easier to support the labor market by lowering the federal funds rate than it is to fix it after it’s broken," Bowman said.
Meanwhile, the Australian Dollar (AUD) outperforms its peers as the Monthly Consumer Price Index (CPI) data for August has come in stronger than projected. Inflationary pressures in the Australian region rose by 3%, faster than expectations of 2.9% and the prior reading of 2.8%. Signs of price pressures accelerating are expected to prompt the Reserve Bank of Australia (RBA) to avoid reducing interest rates in the policy meeting next week.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.39% | 0.38% | 0.43% | 0.19% | -0.21% | 0.28% | 0.36% | |
| EUR | -0.39% | -0.01% | 0.07% | -0.20% | -0.60% | -0.11% | -0.03% | |
| GBP | -0.38% | 0.01% | 0.04% | -0.19% | -0.53% | -0.11% | -0.06% | |
| JPY | -0.43% | -0.07% | -0.04% | -0.27% | -0.64% | -0.24% | -0.11% | |
| CAD | -0.19% | 0.20% | 0.19% | 0.27% | -0.36% | 0.08% | 0.18% | |
| AUD | 0.21% | 0.60% | 0.53% | 0.64% | 0.36% | 0.49% | 0.58% | |
| NZD | -0.28% | 0.11% | 0.11% | 0.24% | -0.08% | -0.49% | 0.11% | |
| CHF | -0.36% | 0.03% | 0.06% | 0.11% | -0.18% | -0.58% | -0.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
