AUD/USD strengthened in Asian trade on Thursday, trading around 0.7055. Australian inflation surprised to the upside, lifting market odds that the Reserve Bank of Australia will raise the cash rate to 4.85% at the next policy meeting to roughly 82% (vs ~62% before the print). Markets will focus on US September PCE data due later Thursday. Commonwealth Bank FX strategist Carol Kong said markets read the absence of explicit discussion of further hikes as dovish or at least not sufficiently hawkish

AUD/USD strengthened in Asian trade on Thursday, trading around 0.7055. Australian inflation surprised to the upside, lifting market odds that the Reserve Bank of Australia will raise the cash rate to 4.85% at the next policy meeting to roughly 82% (vs ~62% before the print). Markets will focus on US September PCE data due later Thursday. Commonwealth Bank FX strategist Carol Kong said markets read the absence of explicit discussion of further hikes as dovish or at least not sufficiently hawkish. Brown Brothers Harriman noted September headline CPI rose 4.3% YoY (vs 4.2% expected, 4.0% in August), driven by housing and transport, reinforcing the case for another RBA hike and supporting the AUD.