Audusd Closes Green On Us Core Pce Surprise

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Audusd Closes Green On Us Core Pce Surprise

Aud/Usd Closes The Week At 0.6530 On Us Core Pce Surprise

The AUD/USD has closed the week near the 0.6530 handle, making it the 5th day in a row of consistent gains. The release of the core PCE (US) was also not enough of a catalyst to prevent the AUD from advancing against the USD.

The PCE data from the USA showed that inflation is still not under the control of the Federal Reserve. This allowed the USD to gain ground against other currencies but the AUD was not one of them. With Friday's trading session closed in green, AUD/USD continues its advances towards new horizons.

Aud/Usd Looks Towards 0.6570

The core PCE (USA) for March was 2.8% y/y, higher than the forecast of 2.6% but similar to the earlier reading. At the same time, the headline PCE inched higher by 2.7% against a forecast of 2.6% and a previous reading of 2.5%.

For the most part, the USD didn't react as positively to the data as it should have, which means the investors are also looking at the GDP growth for Q1.

The data from the last month shows that the US GDP growth rate has stalled while the price inflation has jumped higher. Now, this is a complex situation as the Fed can't go with rate hikes as they will further hamper GDP growth.

On the other hand, an early rate cut means the risk of putting an end to the disinflation trend in the USA. To say that the Fed is now in a really tight spot wouldn't be wrong.

Amidst all of this, the AUD/USD continues to close day after day in green, with eyes now set on the 0.6550, 0.6570, and 0.6600 handle.

In Australia, the RBA is also in a hurry to cut rates in the wake of persistent inflation, similar to what we are seeing in the USA. According to experts, the RBA might introduce the first rate cut in February 2025.

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