The Australian Dollar (AUD) recently found itself in a precarious position, as it dipped to a 10-month low. However, despite this challenging situation, the AUD/USD pair managed to maintain its stance above the crucial 0.6350 mark. This resilience came in the wake of disappointing news regarding Australia’s Retail Sales data, signaling a complex financial landscape for the Aussie Dollar.
ne notable factor contributing to the economic puzzle is the fluctuating monthly Consumer Price Index (CPI) in Australia. Following a decline in July, the CPI rebounded, largely attributed to the relentless surge in energy prices. This unexpected rise in inflation has stirred speculation about the Reserve Bank of Australia (RBA) possibly implementing another interest rate hike. Surprisingly, even with these promising CPI figures, the AUD struggled to gain significant traction in the forex market.
One of the major culprits behind the Australian Dollar’s struggle is the palpable increase in risk aversion sentiment among investors. This apprehension has exerted substantial downward pressure on the currency. Additionally, the AUD’s potential upside is curtailed by the drop in commodity prices, a crucial driver of the AUD/USD pair.
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