Snapshot: AUD/USD is trading at 0.6937, down 0.96% for the day, as the market gears up for the crucial Australian CPI print at 11:30 AEST. The Reserve Bank of Australia remains in a hawkish hold, explicitly retaining the option to hike further, demanding a clear CPI downshift before any pivot.
- The RBA’s current hawkish bias, underscored by recent tightening and explicit optionality to hike, remains the dominant domestic driver for AUD.
- Watch for the US Flash Manufacturing and Services PMI prints at 09:45 ET for immediate cross-currency sentiment cues.
Bias into NY: The immediate focus is on the domestic CPI data, which needs to show a significant deceleration to alleviate hawkish RBA concerns and offer AUD support. A print above expectations would likely extend the downside pressure, pushing AUD/USD towards recent lows.