The Aussie follows the weakness in commodity based currencies as it trades to a fresh yearly low(0.6945, and swings in trader’s confidence may influence the exchange rate as the US stock market pushes to fresh yearly lows.
As a result, the recent series of lower highs and lows may push the AUDUSD pair towards the July 2020 low (0.6877) amid the deterioration in risk appetite, and it remains to be seen if fresh data prints coming out of the US economy will influence the exchange rate as the Consumer Price Index (CPI) is anticipated to downtick for the first time since August.
The CPI is expected to narrow to 8.1% from 8.5% per annum in March, with the core rate of inflation projected to show a similar dynamic, but the figure may do little to influence the monetary policy outlook with the Federal Reserve on track to normalize monetary policy further over the coming months.
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