Australian Dollar Climbs As Fed Rate Hike Concerns Fade
07:29, 11th August 2022
(RTTNews) - The Australian dollar advanced against its most major counterparts in the European session on Thursday, as the demand for riskier assets improved on receding expectations for a larger rate hike from the U.S. Federal Reserve in the wake of a softer-than-expected U.S. inflation data.
Official data showed that inflationary pressures in the U.S. moderated rapidly in July amid lower gas and energy prices.
The weaker-than-expected CPI report prompted investors to scale back expectations for a larger 75 basis-point Fed rate hike in September.
U.S. stocks advanced, extending a rally in the previous session, amid upbeat earnings results from Disney and on the prospect of less aggressive interest rate hikes.
Oil prices rose as the International Energy Agency raised its oil demand growth forecast for this year amid a spike in gas prices.
The aussie firmed to 0.7128 against the greenback, setting a fresh 2-month high. If the aussie rises further, it may find resistance around the 0.73 level.
The aussie climbed to near a 2-month high of 0.9096 against the loonie and a 2-week high of 1.4518 against the euro, following its early lows of 0.9032 and 1.4569, respectively. The currency is likely to locate resistance around 0.92 against the loonie and 1.43 against the euro.
The aussie rebounded modestly against the yen, with the pair trading at 94.14. On the upside, 97.5 is possibly seen as its next resistance level.
In contrast, the aussie pulled back against the kiwi and was trading at 1.1041. Next key support for the aussie is seen around the 1.08 level.
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