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AUD/USD slides after US inflation data cools, USD rebounds

AUD/USD was down 0.4% to about 0.6960 as annual headline PCE held at 3.4% versus a 3.7% market forecast.

Reported · Written up by our desk · Major Pairs

AUD/USD fell 0.4% on Wednesday, trading around 0.6960 after a rebound that was driven by softer-than-expected US inflation data faded, FXStreet reports.

The US Personal Consumption Expenditures (PCE) Price Index showed annual headline inflation unchanged at 3.4% in August, below the 3.7% expected by markets, while July was revised down to 3.4% from 3.7%.

Core PCE, excluding food and energy and closely watched by the Federal Reserve, held steady at 3.0% year over year, below a 3.3% market forecast, with July also revised to 3.0% from 3.3%.

Despite the initial lift in the pair after the data, AUD/USD came under renewed selling pressure as the US dollar rebounded from post-data lows after investors also weighed stronger US employment and economic growth figures.

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