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AUD/USD stays firm near 0.7000 in Wednesday’s Asian session, picking up some bids after China's mixed inflation and upbeat trade data. CPI rose less than expected in September, while PPI inflation picked up. Meanwhile, the Chinese trade surplus unexpectedly widened in September. The pair remains underpinned by a broadly subdued US Dollar, despite the Middle East escalation, as focus remains on US CPI data.
USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.
Gold steadies above $4,150 during the Asian session on Wednesday, awaiting the release of the latest US inflation figures before the next leg of a directional move. The US Consumer Price Index is due for release later today, followed by the Producer Price Index (PPI) on Thursday. Moreover, US Federal Reserve Chair Kevin Warsh's speech at the annual meetings of the IMF and World Bank in Bangkok on Friday will be scrutinized for more cues about the future policy path.
The US Bureau of Labor Statistics will publish the September Consumer Price Index (CPI) data on Wednesday. The report is expected to show a further increase in headline prices and a small uptick in annual core inflation. Any divergence from analysts’ estimates could influence the Federal Reserve’s policy outlook and impact the US Dollar’s valuation.
