AUD/USD climbs to overnight swing high, around 0.7175 in the pre-Fed trading By HareshMenghani AUDUSD RiskAppetite RBA Fed Currencies
The pair attracted fresh buying on Wednesday and is now looking to build on this week's recovery move from the 0.7090 support area, or a one-month low. The Australian dollar was underpinned by rising bets for an earlier interest rate hike by the Reserve Bank of Australia, boosted by Tuesday's stronger domestic CPI report.
On the other hand, the US dollar continued drawing support from expectations that the Fed will tighten its monetary policy at a faster pace than anticipated. In fact, investors now seem convinced about the prospects for an eventual Fed lift-off in March and have been pricing in a total of four rate hikes in 2022.