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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
AUD/USD edges higher toward 0.6900 in the Asian session on Wednesday, recovering some of the previous day’s losses to its lowest level since March as the US Dollar stalls the hot US CPI-inspired rally amid hopes of a US-Iran peace deal. Meanwhile, hawkish comments from FOMC members have almost confirmed another December rate hike, which favors USD bulls and should cap the Aussie.
USD/JPY struggles to build on the previous day’s strong gains to a near one-month top as intervention risk supports the Japanese Yen while hopes of a US-Iran peace deal cap the safe-haven US Dollar. That keeps the pair's upside limited below 159.00, for now.
Gold steadies following the overnight decline, trading near $4,035-$4,040 during the Asian session on Wednesday as US-Iran peace deal hopes cap the post-US CPI US Dollar rally. Meanwhile, the possibility of a jumbo 50 bps Fed rate hike in December could limit the downside for the USD and cap the non-yielding bullion, warranting caution for bullish traders.
Here we go again. The Bureau of Labor Statistics released the October Consumer Price Index data. It was hotter than expected. Persistent price inflation has once again raised expectations for a December rate hike. In fact, many analysts now think the Fed may hike 50 basis points.
