AUD/USD demonstrates firm footing above 0.660 amid a slightly upbeat market mood. The Fed could revise projections for the number of rate cuts this year due to stubborn inflation data. Sticky inflation may keep RBA interest rates higher for a longer period. The Aussie asset moves higher as the US Dollar remains sideways, even though the February United States Consumer Price Index data has prompted uncertainty over Federal Reserve rate cuts in the June policy meeting.
On the contrary, Fed Chair Jerome Powell said in his Congressional testimony last week that the central bank is not far from gaining conviction that inflation will return to 2%. Meanwhile, the Australian Dollar is likely to dance to the tunes of market expectations for the Reserve Bank of Australia’s interest rate decision, scheduled for next week. The RBA is expected to keep the Official Cash Rate steady at 4.35%.