

AUD/USD oscillates below 0.6300 ahead of US Inflation data

- AUD/USD consolidates below 0.6300 as investors await the US CPI data for February. - The US Dollar has remained under pressure amid deepening US economic risks. - The US-China trade war has diminished the appeal of the Australian Dollar. The AUD/USD pair trades in a tight range below the key level of 0.6300 in Wednesday’s European session. The Aussie pair consolidates as investors await the United States (US) Consumer Price Index (CPI) data for February, which will be published at 12:30 GMT. Investors await the US inflation data to get fresh cues about whether the Fed will cut interest rates in the May meeting. In the policy meeting next week, the Fed is almost certain to keep interest rates steady in the range of 4.25%-4.50%. According to the CME FedWatch tool, there is a 42% chance that the central bank will cut interest rates in May, increased significantly from 10.4% seen a month ago. The US CPI report is expected to show that year-on-year headline inflation rose at a slower pace of 2.9%, compared to a 3% increase seen in January. In the same period, the core CPI – which excludes volatile food and energy prices – is expected to have decelerated to 3.2% from the prior release of 3.3%. Ahead of the US inflation data, the US Dollar Index (DXY) is marginally higher from its four-month low of 103.35. The US Dollar (USD) has remained on the backfoot as investors worry about the US economic outlook under the leadership of President Donald Trump. On Tuesday, the comments from US Commerce Secretary Howard Lutnick indicated that Trump's policies are worth fears that they could lead to a recession. Meanwhile, the upside in the Australian Dollar (AUD) remains capped amid fears that the US-China trade war could result in a sharp decline in Australia’s business activity, knowing that Australia relies heavily on exports to China. Till now, the US has imposed 20% tariffs on imports from China.

Learn more

Publication date:

2025-03-12 12:59:21 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.