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AUD/USD holds near 0.6972 after Australian CPI surprise
Australian CPI for August rose to 4.0% year over year, reinforcing expectations of additional Reserve Bank of Australia rate hikes.
The Australian dollar held its recovery against the US dollar in early European trading, with AUD/USD steady near 0.6972 after bouncing off a low of 0.6960, FXStreet reported. Even with the rebound, the pair remained 0.18% below Tuesday’s close of 0.6985.
FXStreet said the move follows the release of Australia’s August CPI, which showed year over year inflation at 4.0% versus 3.55 in July. The monthly figure cooled to 0.4%, matching estimates after 1.0% in the prior reading.
The newsletter linked the support for the currency to signs that Australian price pressures are accelerating again, which has improved expectations for further Reserve Bank of Australia hikes this year. FXStreet added that, so far in 2026, the RBA has raised its Official Cash Rate four times to 4.6%.
On the US side, FXStreet pointed to upcoming August US Personal Consumption Expenditure, or PCE, price data scheduled for 12:30 GMT, as AUD/USD traded around 0.6977 in the daily chart. The update said the pair was extending its recovery in that range.