AUD/USD Recovers Slightly After USD Weakens
This week the AUD/USD has recovered slightly after its rapid decent last week. After opening at 0.8995 on Monday the pair reached 0.9092 on Tuesday and on Wednesday stayed around this region.
The dollar slipped slightly after data showed that US consumer prices fell for the first time in 16 months in August and as investors awaited the outcome of the Federal Reserve’s policy meeting. The US consumer price index fell 0.2% in August and pulled the annual rate of inflation down to 1.7% from 1.9% in July.
The USD will react to the outcome of the Federal Reserve meeting this week and will have a significant impact on the direction that this pairing takes. Furthermore, the AUD is expected to fall further after Australia’s August Westpac-MI leading index fell 0.09 to 98.05 this week.