Fundamental News - AUD/USD

The Australian dollar rose toward $0.74 on April 19 after sliding for three straight sessions, as minutes of the latest Reserve Bank of Australia meeting suggested it was edging closer to raising interest rates for the first time in more than a decade due to accelerating inflation and rising wages. Data for consumer prices are due on April 26 and analysts suspect it will show core inflation jumped 1% or more in the first quarter to lift the annual pace to at least 3.2%. That would be the first time core inflation topped the RBA’s 2-3% target band since early 2010, making it harder to justify retaining rates at emergency lows of 0.1%. Markets are pricing in a rise in rates to 0.25% at the RBA’s June 7 policy meeting, and implying a move to near 2% by year-end. The aggressive outlook in part reflects expectations the Federal Reserve will hike by 50 basis points in both May and June, adding pressure for other central banks to follow.