US inflation data surprised markets early Wednesday, the report showing yearly inflation has fallen from 3.7% to 3.2% with energy, utility and gas prices all declining in the month of September. This news confirms the Fed will most likely be taking off the table a hike at their December policy meeting. Treasury yields plunged and the US Dollar (USD) was heavily sold off across the board. Against the Aussie price moved to just under 0.6550 from around 0.6380. Meanwhile Aussie unemployment moved higher off 3.6% to 3.7% beating out expectations of 3.6% suggesting the RBA may have work still to do. Risk sentiment remains tender with the conflicts in Gaza, we don’t expect the AUD to move up past current levels over the medium term with overall bias still to the downside.
The current interbank midrate is: AUDUSD 0.6470
The interbank range this week has been: AUDUSD 0.6352- 0.6542