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Currency News

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(28 Aug 2025, 15:36)

Australian Dollar supported after elevated inflation reading

The Australian Dollar/US Dollar or AUD/USD pair is trading around 0.6520 on Thursday, consolidating near two-week high. The pair rose impressively yesterday after Australia's consumer price inflation or CPI accelerated to a one-year high in July. The CPI surged 2.8 percent year-on-year in July, following June's 1.9 percent rise, the Australian Bureau of Statistics reported. This was the strongest since July 2024, when inflation was 3.5 percent. At the August meeting, the Australian central bank unanimously decided to trim the cash rate target by 25 basis points to 3.60 percent, which was the third reduction this year. However, the pace of reductions could be moderate following the recent spike in inflation.
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