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AUD/USD under pressure

The AUD/USD remains heavily offered in early Europe as the European traders hit their desks and react negatively to the poor Australian CPI figures released earlier today.

Australia’s Q1 headline CPI figures came in at -0.2% q/q versus +0.2% expected and +0.4% previous. While the trimmed mean CPI stood at +0.2% versus +0.5% expected and against +0.6% last.

Overnight, the dollar remained broadly lower against the other major currencies on Tuesday, as the release of disappointing U.S. economic reports dampened demand for the greenback and as investors remained cautious ahead of the Federal Reserve’s policy statement on Wednesday.

The recent sell-off in the iron-ore prices also exacerbated the pain in the resource-linked Aussie. Further, comments from Goldman Sachs, citing that the Wall Street banker expects RBA rate cut next week, also weighed down on the AUD/USD pair.

Focus FOMC…
Markets continue weigh RBA easing chances, while the main highlight for today remains the FOMC meeting outcome due to be announced in the NY session.

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