- The Australian dollar extends its fall for the third consecutive day against the US dollar.
- Persistent inflationary pressures led markets to reduce the expectations of interest rate cuts of the Fed in September.
- The US dollar index rises to 98.70, reaching a maximum of three weeks due to firm inflation and reevaluation of hard line rates..
The Australian dollar (AUD) weakened even more against the US dollar (USD) on Tuesday, after inflation data in the US better than expected that the hopes of a short -term interest rate cuts discouraged. The US dollar shot on all fronts, pushing the aud/USD at 0.6510 during the US negotiation session.
The US consumer price (CPI) index rose 0.3% in June compared to the previous month, slightly above the 0.2% and 2.7% year -on -year consensus, exceeding 2.4% in May. He marked the fastest pace since January and pointed out that the underlying pressures on prices are still persistent despite the hardening efforts of the Fed. The data caused a strong reevaluation in the future funds of the Fed, with the probabilities of a rate cut in September falling below 55%, from almost 65% to the beginning of the week.
The strong reading of the CPI revived the demand for the US dollar, with the US dollar index (DXY) shooting at 98.70, its highest level in three weeks. The increase in the US dollar weighed on risk -sensitive currencies, such as Australian, especially in a global cautious risk environment dominated by commercial tensions.
After the June IPC report, former President Donald Trump resorted to Truth Social to renew his call to immediate cuts of interest rates, stating: “Low consumer prices. Reduce the Fed rate, now !!!” He said that a substantial reduction in interest rates could save the US government more than one billion dollars per year in debt service costs. The publication adds another layer of political pressure on the Federal Reserve, even when inflation remains above the objective of 2% and markets continue to value only a gradual relief of politics in the coming months.
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.61% | 0.36% | 0.83% | 0.12% | 0.53% | 0.55% | 0.43% | |
| EUR | -0.61% | -0.32% | 0.19% | -0.51% | -0.12% | -0.12% | -0.18% | |
| GBP | -0.36% | 0.32% | 0.50% | -0.19% | 0.17% | 0.16% | 0.30% | |
| JPY | -0.83% | -0.19% | -0.50% | -0.72% | -0.30% | -0.33% | -0.32% | |
| CAD | -0.12% | 0.51% | 0.19% | 0.72% | 0.41% | 0.36% | 0.48% | |
| Aud | -0.53% | 0.12% | -0.17% | 0.30% | -0.41% | -0.02% | 0.07% | |
| NZD | -0.55% | 0.12% | -0.16% | 0.33% | -0.36% | 0.02% | 0.12% | |
| CHF | -0.43% | 0.18% | -0.30% | 0.32% | -0.48% | -0.07% | -0.12% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
