The Australian dollar rose in Asian trade on Wednesday against the US dollar after a short hiatus yesterday, with the pair heading towards four-month high and about to mark the second monthly profit in a row. 

Earlier Sydney data showed inflationary pressures remained persistent on monetary policymakers, casting doubts on the odds of an Australian interest rate cut in May.

The Price

The AUD/USD pair rose 0.35% today to 0.6407, with a session-low at 0.6379.

Aussie lost 0.75% on Tuesday against the greenback on profit-taking away from a four-month high at 64.50 cents.

Monthly Trades

Across April, the aussie is up 2.5% so far against the US dollar, on track for the second monthly profit in a row.

The gains are boosted by short-covering near five-year lows, while the risk appetite improved in the markets as global trade tensions receded.

Australian Inflation

Australia’s consumer prices rose 2.4% y/y in March, above estimates of 2.3%, and same as the previous reading in February.

On a quarterly basis, consumer prices rose 0.9% in the first quarter, up from 0.2 % in the fourth quarter of last year.

Australian Rates

The odds of a 0.25% interest rate cut in May by the Reserve Bank of Australia fell to 95%.

The RBA held interest rates steady at 4.1% earlier this month but said May provides a good opportunity to review monetary policies.

Australia’s consumer prices rose 2.4% y/y in March, above estimates of 2.3%, and same as the previous reading in February.

Gold prices fell on Tuesday as the dollar rose against most major rivals, with markets focusing on corporate earnings results. 

Investors are waiting for the results of major US tech corporations, starting with Meta and Microsoft tomorrow, then Apple and Amazon on Thursday.

US Treasury Secretary Scott Bessent called on China to calm trade tensions, and said the responsibility falls on China for reaching a trade deal.

Bessent said in a CNBC interview that China should move to calm the trade tensions as they sell to the US five times what the US sells to them.

He once again said the reciprocal tariffs between Washington and Beijing are not sustainable, pointing to the progress on trade negotiations between the Trump administration and many other countries, including India.

Earlier US data showed the number of available job openings fell to 7.2 million in March, the lowest since March.

And according to the Conference Board institution, the US consumer confidence index fell to 86.0 in April from 92.9 in March.

Otherwise, the dollar index rose 0.2% as of 19:39 GMT to 99.2, with a session-high at 99.3, and a low at 98.9.

On trading, gold spot prices fell 0.6% as of 19:40 GMT to $3328.2 an ounce.

Most US stock indices gained ground on Tuesday as markets focus on corporate earnings results, with trade tensions calming down.

Investors are waiting for the results of major US tech corporations, starting with Meta and Microsoft tomorrow, then Apple and Amazon on Thursday.

US Treasury Secretary Scott Bessent called on China to calm trade tensions, and said the responsibility falls on China for reaching a trade deal.

Bessent said in a CNBC interview that China should move to calm the trade tensions as they sell to the US five times what the US sells to them.

He once again said the reciprocal tariffs between Washington and Beijing are not sustainable, pointing to the progress on trade negotiations between the Trump administration and many other countries, including India.

On trading, Dow Jones rose 0.5% as of 15:55 GMT, or 192 points to 40402 points, while S&P 500 rose 0.1% to 5535 points, as NASDAQ added 0.1% to 17,372 points.