The Australian Dollar rises as traders await China’s consumer inflation figures, while Fed minutes reveal divided views on rate policy.
AUD/USD advanced to 0.6930 in Asian trading Thursday, recovering from a flat session as markets brace for China’s consumer price index data. The Australian Dollar found support from expectations of economic cues from its largest trading partner, China, which could influence commodity demand and growth outlooks.
The pair’s move follows Wednesday’s Federal Reserve minutes, which showed policymakers split over inflation’s trajectory. Some officials anticipate rates ending the year near current levels, while others foresee further hikes. The CME FedWatch tool now prices a 30% chance of a rate increase at the next meeting, up sharply from prior expectations.
Geopolitical tensions in the Middle East added upward pressure on the USD as a safe-haven asset, though the Greenback’s gains were capped by Fed uncertainty. Markets will also watch US weekly jobless claims later today for further direction.