Australian Dollar Looks to Inflation Data for Rebound Prospect
- Currency has dropped 2.7% in past two weeks as Fed bets grow
- Barclays see Aussie gaining to 76 U.S. cents by year end
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The Australian dollar may rebound from four weeks of losses as inflation data is due to provide clues on the pace of monetary policy tightening.
Economists expect data on Wednesday to show the annual trimmed mean gauge of consumer prices rose to 3.4% in the first quarter, higher than the central bank’s 2% to 3% inflation target. The Aussie has dropped about 2.7% against the dollar in the past two weeks amid growing expectations of aggressive rate hikes by the Federal Reserve.