The AUD/USD pair hovers near a fresh three-week high at 0.6640 in Wednesday’s European session. The Aussie asset clings to gains as the US Dollar (USD) dips ahead of the United States (US) Consumer Price Index (CPI) data for July, which will be released at 12:30 GMT.Investors will keenly focus on the US inflation data as it will influence market speculation for the size of interest-rate cuts by the Federal Reserve (Fed) in the September meeting. The CME FedWatch tool shows that traders price in a 54.5% chance for a 50 basis point (bp) rate reduction in September.The US CPI report is expected to show that monthly headline and core inflation rose by 0.2%. Annual headline and core CPI are estimated to have decelerated by one-tenth to 2.9% and 3.2%, respectively. Start Trading Now With The World’s Best Trading Platform! Meanwhile, the market sentiment remains steady ahead of the US inflation data release. S&P 500 futures have posted nominal gains in European trading hours. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slides further below 102.50. 10-year US Treasury yields slump to near 3.84%.The Australian Dollar (AUD) remains on sidelines as investors await the Aussie Employment data for July, which will be published on Thursday. Economists expect that labor demand remain slowed in July as fresh payrolls are seen at 26.5K payrolls, lower than June’s reading of 50.2K. The Unemployment Rate is seen steady at 4.1%.The labor market data will influence expectations for the Reserve Bank of Australia’s (RBA) interest rate path. Currently, the RBA is expected to leave its Official Cash Rate (OCR) unchanged at 4.35% for the entire year.More By This Author:USD/CAD Stays Near 1.3700 After Expected Decline In US Inflation EUR/USD Posts Seven-Month High Above 1.1000 Ahead Of US Inflation AUD/JPY Struggles To Extend Recovery Above 98.00 Ahead Of Aussie Employment
