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Australian dollar edges higher as US PPI cools
AUD/USD rose to around 0.7000 after US producer inflation data pointed to easing inflation pressures, weakening the dollar.
The Australian dollar gained ground on Wednesday, with AUD/USD trading near 0.7000 as the US dollar weakened following softer-than-expected US producer inflation. FXStreet cited US Producer Price Index data showing June PPI fell 0.3% month over month, reversing May’s 0.6% increase, and annual producer inflation slowed to 5.5% from a revised 6.0%. Core PPI, excluding food and energy, rose 0.2% month over month versus expectations for 0.4%, reinforcing views that US inflation pressures may be easing.
The move also reflected additional support from China-linked data, where industrial activity and retail spending came in stronger than earlier concerns despite slower overall growth. In China, GDP expanded 0.9% quarter over quarter in the second quarter, while industrial production rose 5.3% year over year and retail sales increased 1.0% after a prior decline.
FXStreet added that technical levels remained supportive for the pair, noting AUD/USD at about 0.6996 and holding above key short term moving averages, with nearby resistance around 0.6999.