Australia’s July CPI rose 3.5% YoY, exceeding forecasts, while US core PCE held at 3.3%, supporting the greenback.
AUD/USD dipped to 0.7170 after Australia’s July CPI climbed 1% month-on-month, lifting the annual rate to 3.5%, above the 0.8% and 3.4% forecasts, respectively. The RBA’s trimmed mean measure rose 0.5% on the month, holding at 3.6% YoY, also above expectations.
US inflation data showed core PCE inflation steady at 3.3% YoY, matching consensus, while the broader PCE held at 3.7%, slightly above forecasts. Both measures rose 0.2% month-on-month, reinforcing the dollar’s strength.
Technical analysis indicates AUD/USD remains above key moving averages, with RSI near 60, suggesting potential upside but facing resistance near recent highs.