Australian Dollar declines to near 0.7150 as hot US inflation data boost case for Fed rate hike
The AUD/USD pair edges lower to around 0.7160 during the early Asian session on Monday. Stronger-than-expected US inflation reports provide some support to the US Dollar (USD) against the Australian Dollar (AUD). All eyes will be on the US Federal Reserve (Fed) interest rate decision on Wednesday. The US Consumer Price Index (CPI) rose 0.4% MoM in August, putting the 12-month increase at 3.4%, the Bureau of Labor Statistics reported Friday. Both readings were in line with the Dow Jones consensus. The core CPI, which excludes volatile food and energy prices, increased by 0.3% on a monthly basis, compared to the market consensus of 0.2%, and 2.4% on a yearly basis, down slightly from 2.5% in July. The CPI inflation data followed strong readings in several components of the Producer Price Index (PPI) released on Thursday, raising the specter of a Fed interest rate hike next week and supporting the Greenback. Financial markets initially priced in an 86.2% odds of a quarter-point rate hike at the Fed‘s September meeting, up from 72% before the CPI data, according to CME’s FedWatch tool. Discover more News Merchant Services & Payment Systems Digital Currencies A hawkish tone from the Reserve Bank of Australia (RBA) might help limit the Aussies losses. RBA Assistant









