FXStreet reported the Australian dollar rose Wednesday after Tuesday's U.S. inflation release; its 0.3% monthly core reading matched a level Federal Reserve Gov. Christopher J. Waller said should prompt consideration of a larger December increase.
FXStreet's report, timestamped 2:45 a.m. ET, put AUD/USD near 0.6875 during early European trading on Nov. 11. The outlet said the pair had reached the 0.6840-0.6845 range the previous day, its lowest level since late March.
The U.S. Bureau of Labor Statistics (BLS) said the Consumer Price Index for All Urban Consumers rose 0.4% month over month in October on a seasonally adjusted basis, following September's 0.6% increase. The index excluding food and energy, known as core CPI, advanced 0.3% from September for a third straight month. Reuters reported that economists it surveyed had expected a 0.3% headline increase and a 0.2% core increase.
In a Nov. 10 speech delivered before the CPI release, Waller said he would support a 25-basis-point increase at the Federal Open Market Committee's December meeting under his expected scenario. He said a 50-basis-point increase should be considered if October core CPI came in around 0.3% or higher. The reported reading matched his benchmark for considering a larger move; his remarks were his own view, not a committee condition or decision.
At its Nov. 3 meeting, the Reserve Bank of Australia (RBA) raised its cash-rate target by 0.25 percentage point to 4.85%, effective Nov. 4. Governor Michele Bullock offered no signal on the next move, saying, “I don't know what the next move will be.” The RBA's November outlook put inflation's return to the midpoint of its 2% to 3% target range in mid-2028, citing higher global fuel prices and domestic price and cost pressures.
EconoTimes previously covered TD Securities' view that the Australian dollar may lag after the RBA hike. The RBA's next meeting is scheduled for Dec. 7-8, followed by the FOMC meeting on Dec. 8-9.
