AUDUSD Holds Around 0.6400
London: 14 November 2023 (TraderMade): The AUD/USD pair maintains a tight range around 0.6400 as anticipation builds around the upcoming United States inflation data for October. Investors closely watch for signals on whether the Federal Reserve (Fed) will advocate further interest rate hikes, influencing the direction of the Aussie asset.
AUDUSD closed at 0.6489 on 6 November. By around 1:42 PM GMT, the pair was at 0.64416, showing a decline of about 0.73%.
Negative consumer sentiment
A survey revealed that Australian consumer sentiment turned negative in early November, driven by renewed worries about higher living costs following the recent interest rate hike by the Reserve Bank. Despite previous improvements, sentiment dropped after the central bank raised rates, expressing concerns about persistent inflation.
US inflation data release
The US inflation data release is poised to guide expectations on the Federal Reserve's future monetary policy actions. Recent comments from Fed Chair Jerome Powell express uncertainty about whether the current monetary policy is restrictive enough to curb inflationary pressures.
Australian labor market
Meanwhile, attention on the Australian Dollar shifts to the Q3 Wage Price Index, scheduled for Wednesday. Better labor cost index growth could fuel expectations for another interest rate increase by the Reserve Bank of Australia (RBA), following last week's widely expected 25 basis points hike to 4.35%.
Stay updated with the AUDUSD live rates to make informed decisions.
