Investing.com - The Australian dollar was higher against its U.S. counterpart on Wednesday, as Australian consumer price inflation data sparked new hopes of a rate cut by the country’ central bank while markets eyed the Federal Reserve’s rate statement later in the day.
AUD/USD 1.0535 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0527, rising 0.31%.
The pair was likely to find support at 1.0427, Tuesday’s low and resistance at 1.0634, the high of September 9.
The Reserve Bank of Australia said earlier that Australia’s CPI was unexpectedly flat in the fourth quarter, confounding expectations for a 0.2% rise, after a 0.6% rise the previous quarter.
The report also showed that trimmed mean CPI rose more-than-expected in the fourth quarter, ticking up 0.6% after a 0.4% rise the previous quarter.
Analysts had expected trimmed mean CPI to rise 0.5% in the fourth quarter.
The data came after a report showing that the Melbourne Institute’s leading index for Australia declined 0.2% in November after a 0.1% rise the previous month.
In the U.S., the Fed was to announce the federal funds rate and publish its official rate statement later Wednesday.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.37%, to hit 1.2378.
Later in the day, the U.S. was to release industry data on pending home sales, followed by official data on crude oil stockpiles.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.
AUD/USD 1.0535 during late Asian trade, the daily high; the pair subsequently consolidated at 1.0527, rising 0.31%.
The pair was likely to find support at 1.0427, Tuesday’s low and resistance at 1.0634, the high of September 9.
The Reserve Bank of Australia said earlier that Australia’s CPI was unexpectedly flat in the fourth quarter, confounding expectations for a 0.2% rise, after a 0.6% rise the previous quarter.
The report also showed that trimmed mean CPI rose more-than-expected in the fourth quarter, ticking up 0.6% after a 0.4% rise the previous quarter.
Analysts had expected trimmed mean CPI to rise 0.5% in the fourth quarter.
The data came after a report showing that the Melbourne Institute’s leading index for Australia declined 0.2% in November after a 0.1% rise the previous month.
In the U.S., the Fed was to announce the federal funds rate and publish its official rate statement later Wednesday.
Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.37%, to hit 1.2378.
Later in the day, the U.S. was to release industry data on pending home sales, followed by official data on crude oil stockpiles.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.