Australian Dollar Struggles as Strong US Dollar Awaits Key CPI Data

AUD/USD Struggles Ahead of Key US CPI Data Release

The Australian Dollar (AUD) remains under pressure against the US Dollar (USD) on Wednesday, as the pair faces headwinds from the USD’s broad-based strength. Market participants are closely watching the release of the crucial US Consumer Price Index (CPI) data for November, scheduled later during the North American trading session.

Current projections indicate that the US CPI inflation rate will rise to 2.7% year-over-year (YoY) in November, up from 2.6% in October. The Core CPI, which excludes volatile categories like food and energy, is anticipated to hold steady with a 3.3% YoY increase.

Should inflation figures indicate slowing progress, the Federal Reserve’s (Fed) likelihood of maintaining higher interest rates could rise, lending further support to the USD. However, market sentiment currently reflects an 85.8% probability of a 25 basis point Fed rate cut during the December 18 meeting, according to the CME FedWatch Tool.

Stay updated with the latest developments impacting the currency pair as traders gear up for potential volatility surrounding.