AUD/USD advances towards 0.6900 ahead of US Inflation and Aussie Employment data

• AUD/USD is marching towards 0.6900 on a lower forecast for headline US inflation.
• A decline in US inflation could scale down the hawkish tone of Fed policymakers.
• The Aussies economy is expected to display job additions by 50k against layouts reported earlier.

The AUD/USD pair is displaying back-and-forth moves in a tad higher range of 0.6824-0.6852 from the early Tokyo session. The asset has turned sideways after printing a fresh September high at 0.6877. The major is expected to continue its advancing momentum after an upside break of the consolidation.

Investors are underpinning the aussie bulls against the greenback on lower forecasts for US inflation. A decline in consensus for the US Consumer Price Index (CPI) data, which will release on Tuesday, is seen at 8.1%, lower than the prior release of 8.5%. While the core CPI that excludes fossil fuels and food prices is seen higher at 6% by 10 basis points (bps). An occurrence of the same will delight the households as the latter is facing the headwinds of higher payouts.

No doubt, back-to-back decline in the headline US Consumer Price Index (CPI) warrant exhaustion signals. Falling gasoline prices in the US and jaw-dropping interest rates have resulted in a decline in inflation forecasts. The odds of a rate hike by the Federal Reserve (Fed) in the September monetary policy meeting remain solid, however, the scale of the hawkish tone could trim as the Fed will have the luxury of hiking rates modestly.

On the Aussie front, investors are awaiting the release of the employment data. As per the consensus, the Unemployment Rate is expected to remain stable at 3.4%. The show stopper data will be Employment Change, which is seen extremely higher at 50k against job cuts of 40.9k.