- The AUD/USD pair manages to move the auction above 0.6400 amid the US Dollar correction.
- A stronger PPI report in the US has raised expectations of a hot report on consumer inflation in September.
- Investors are awaiting the FOMC Minutes, which will provide a detailed explanation of the decision to hold rates.
The AUD/USD pair appears to be stabilizing above the resistance of the 0.6400 round level in the early part of the New York session. The pair strengthens while the Dollar declines after the publication of the Producer Price Index (PPI) report for September.
The S&P 500 opens higher as US Treasury yields fall from multi-year highs. US 10-year Treasury yields have fallen to 4.6%, reflecting improved risk appetite among market participants.
The US Dollar Index (DXY) falls below 105.60, even though rising producer inflation has raised expectations for a report on consumer inflation in September, due out on Thursday at 12:30 GMT. The US Bureau of Labor Statistics reported that the annual core PPI came in at 2.7%, an acceleration from expectations of 2.5% and the previous release of 2.3%. In monthly terms, the general and underlying PPI rose 0.5% and 0.3% respectively.
Meanwhile, neutral comments from Federal Reserve (Fed) policymakers have pushed the US dollar back. Rate-setters commented that rising yields could slow the pace of spending and investment. Therefore, the Fed could avoid raising rates further.
Looking ahead, the focus will be on the Federal Open Market Committee’s (FOMC) monetary policy minutes in September, which will provide a detailed explanation of the decision to hold rates.
On the Australian front, rising expectations of a further interest rate hike by the Reserve Bank of Australia (RBA) in the remainder of 2023 have enhanced the appeal of the Australian dollar. The improving outlook for oil prices due to worsening tensions in the Middle East could raise inflationary pressures in the future.
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.
