• Australian Dollar is rising against the US Dollar after the latest US inflation data showed a decline in the CPI.
• RBA’s Hunter spoke about Australia's labor market, highlighting that it is still tight relative to full employment.
• As the RBA remains hawkish, the AUD/USD pair’s upside is open.

The AUD/USD rose by 0.25% to 0.6670 on Wednesday as markets reacted to the release of US inflation data and comments from the Reserve Bank of Australia (RBA). The US Consumer Price Index (CPI) showed a decline in the annual rate of price increases, raising hopes that the Federal Reserve (Fed) may slow the pace of interest rate hikes. 

In the face of a complex economic outlook, the Reserve Bank of Australia's (RBA) aggressive stance against high inflation has tempered market expectations. With inflation remaining elevated, investors now anticipate a more gradual easing of monetary policy, forecasting only a 0.25% interest rate reduction by 2024.