AUD/USD Declines From Two-Week High Around 0.6300, US CPI In Focus
The AUD/USD pair faces sharp selling pressure after failing to break above the key resistance level of 0.6300 in Wednesday’s European session. The Aussie pair is down 0.26% to near 0.6270, while the US Dollar Index (DXY) is broadly sideways around 108.00, at the press time. Such a scenario indicates significant weakness in the Australian Dollar (AUD).
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.10% | 0.00% | 0.69% | 0.16% | 0.34% | 0.35% | -0.27% | |
| EUR | 0.10% | 0.11% | 0.78% | 0.26% | 0.44% | 0.46% | -0.16% | |
| GBP | -0.01% | -0.11% | 0.67% | 0.16% | 0.33% | 0.35% | -0.27% | |
| JPY | -0.69% | -0.78% | -0.67% | -0.53% | -0.34% | -0.34% | -0.95% | |
| CAD | -0.16% | -0.26% | -0.16% | 0.53% | 0.19% | 0.19% | -0.43% | |
| AUD | -0.34% | -0.44% | -0.33% | 0.34% | -0.19% | 0.02% | -0.61% | |
| NZD | -0.35% | -0.46% | -0.35% | 0.34% | -0.19% | -0.02% | -0.62% | |
| CHF | 0.27% | 0.16% | 0.27% | 0.95% | 0.43% | 0.61% | 0.62% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
The antipodean falls sharply amid firm expectations that the Reserve Bank of Australia (RBA) will reduce interest rates next week. This would be the first interest rate cut by the RBA since 2020. Dovish RBA bets are based on a significant decline in Australian inflation, which decelerated to 2.4% in the fourth quarter of 2024.
Meanwhile, deepening fears of a potential trade war between the United States (US) and China also weighed on the Australian Dollar, being a liquid proxy of the Chinese Yuan (CNY). Last week, China retaliated against 10% tariffs from Donald Trump by imposing 15% levies on coal and Liquified Natural Gas (LNG), and 10% for crude oil, farm equipment and some autos.
On the US front, investors await the Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT. The inflation data is expected to influence market speculation for the Federal Reserve’s (Fed) monetary policy outlook. Fed Chair Jerome Powell said on Tuesday in the two-day testimony before Congress that the central bank can “ease policy if labor market unexpectedly weakens or inflation falls more quickly than expected".
Economists expect the annual core CPI – which excludes volatile food and energy prices – to have grown at a slower pace of 3.1%, compared to 3.2% increase in December, with the headline inflation rising steadily by 2.9%.
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