FXStreet reported the Australian dollar down near 69 U.S. cents before U.S. core inflation reached the level Federal Reserve Governor Christopher Waller cited for considering a larger December rate increase.
The outlet quoted AUD/USD at $0.6905 at 7:55 a.m. ET (12:55 UTC) Tuesday, down 0.31% on the day. That reading preceded the U.S. inflation report, so it does not show how the currency moved after the data arrived.
The Bureau of Labor Statistics (BLS) said the seasonally adjusted Consumer Price Index rose 0.4% in October, following a 0.6% increase in September. Core prices, which exclude food and energy, rose 0.3%, matching their monthly increase in each of the two previous months.
Speaking before the release, Waller said he leaned toward raising rates by 25 basis points in December. He also said officials should weigh a 50-basis-point increase if October’s monthly core reading came in around 0.3% or higher. The reported figure met that condition, but his remarks did not commit him or the Federal Reserve to a larger move.
The Fed held its target rate range at 3.75% to 4% in October, with two officials voting for a 25-basis-point increase. The Reserve Bank of Australia (RBA) raised its cash rate target to 4.85% on Nov. 3, citing broad inflation and pressure on the economy’s capacity. The RBA said higher interest rates and falling housing prices were expected to weigh on household consumption and dwelling investment.
The RBA’s next rate decision is scheduled for Dec. 8. The Fed meets Dec. 8-9.
