Australian dollar supported against USD due to US rate cut sentiment and hot consumer price data, although challenged by China's Q2 GDP growth.

The Australian dollar (AUD) remains supported against the US dollar (USD) due to risk-on sentiment as the US data continues to support at least two rate cuts from the Fed without sending recessionary signals. In addition, the Australian dollar gained after a hot monthly consumer price report, raising chances of a rate hike. However, the AUD/USD pair could face challenges as China's GDP grew 4.7% over the year in Q2 2024, compared to a 5.3% expansion in the first quarter, causing mild bearish pressure on the AUD.

July 14, 2024
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