|

AUD/USD stays on the front-foot ahead of Aussie CPI, Fed rate decision

  • AUD/USD begins the key day with modest gains around a weekly high.
  • RBA Governor’s hawkish statement confronts recent doubts over the US-China trade meet in Chile.
  • Australia’s Q3 CPI becomes crucial for Asian traders amid a light economic calendar ahead of the European session.

Following its rise to be the winner of the day, the AUD/USD pair holds on to recovery gains while trading around 0.6865 amid the initial Asian session on Wednesday.

Even if doubts over the US-China trade meeting on November 17, mainly due to the geopolitical problems in Chile, recently keep the commodity-linked currencies under check, comments turning down the odds of negative rates by the RBA Governor helped the Aussie on Tuesday.

The Reserve Bank of Australia (RBA) Governor Philip Lowe’s appearance on Tuesday could be termed as a quite hawkish when the central banker noted that it’s extraordinarily unlikely that rates will go negative in Australia.

Also adding to the market’s risk-taking capacity is the Brexit positive headlines that have lately favored the British Prime Minister’s (PM) motion to call for an early election.

That said, the market’s risk-tone has been heavier off-late as the economic calendar shifts gears to the key data/events. Among them, third quarter (Q3) Consumer Price Index (CPI) and the RBA Trimmed Mean CPI will be of immediate interest while the preliminary reading of the Q3 Gross Domestic Product (GDP) and the Federal Reserve’s monetary policy meeting from the United States will be crucial afterward.

As a result, the US 10-year Treasury yields backstepped from the recent high of 1.85% to near 1.84% while Wall Street also closed on the downside despite heavy initial gains.

Although market forecast suggests a bit of soft price pressure in Australia supporting dovish monetary policy actions from the RBA, Westpac seems optimistic with its expectations of 0.6% CPI (versus 0.6% prior) on QoQ and 1.8% (versus 1.7% earlier) on YoY basis.

While an upbeat print could offer short-term gains to the Aussie amid trade-positive environment and following the recent comments from the RBA Chief, the price pressure still lacks the central bank’s target and could keep further easy money policy on the cards.

Technical Analysis

Unless breaking the 0.6884/95 area including September/October month high, prices bear the risk of a pullback to 50-day Exponential Moving Average (EMA) level of 0.6812.

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Editor's Picks

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as  Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.
 

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.