The AUD/USD pair advanced for the third consecutive day on Wednesday, breaking through the 0.6200 resistance level. This upward trajectory in the very short term suggests an ongoing recovery, with immediate resistance poised around the 0.6300 mark. Market participants are closely watching the key Australian jobs report scheduled for release on Thursday, which may further influence the currency pair's dynamics.
Meanwhile, the EUR/USD pair maintained stability, hovering around 1.0295 during the early Asian session on Thursday. This steadiness comes amid a backdrop of cooler-than-expected US Consumer Price Index (CPI) inflation data for December. The unexpected softness in inflation has led to increased speculation that the US Federal Reserve might consider cutting interest rates twice this year, adding pressure on the US Dollar, commonly referred to as the Greenback.
The potential interest rate cuts by the Federal Reserve weigh heavily on the Greenback, prompting shifts in currency market dynamics. As traders anticipate changes in monetary policy, currencies such as the Australian Dollar have found room to strengthen against the US Dollar.
In a separate development, HDR Global Trading Limited, the operator of crypto exchange BitMEX, encountered legal troubles. A US District Court imposed a $100 million fine on the company for breaching the Bank Secrecy Act and Anti-Money Laundering laws. This legal action underscores the growing regulatory scrutiny facing cryptocurrency exchanges globally.
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