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AUD/USD is renewing two-month lows near 0.6950 in the Asian session on Wednesday, as in-line with estimates August Australian CPI data pours cold water on further RBA interest rate hikes. Mixed Chinese PMI data also fail to inspire the Australian Dollar, despite a pause in the US Dollar advance.
USD/JPY extends its consolidative price move during the Asian session on Wednesday, trading below mid-157.00s. Hawkish BoJ expectations, along with intervention risks, underpin the Japanese Yen, though dismal domestic data cap gains. Meanwhile, rising Fed rate hike bets and oil-driven inflation fears push US bond yields to fresh multi-year highs. Moreover, the US-Iran standoff supports a bullish US Dollar and acts as a tailwind for the currency pair.
Gold struggles to capitalize on the previous day's recovery from an eight-week low, consolidating below $4,200 during the Asian session on Wednesday. The overnight slide in oil prices eased the US Treasury bond rout, supporting the bullion. However, Fed rate-hike bets and inflationary concerns keep bond yields near multi-year highs. Moreover, geopolitical uncertainties underpin the safe-haven US Dollar, which, in turn, caps the commodity.
