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FxWirePro: AUD/USD in holding pattern as market await fresh catalyst
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• AUD/USD eased slightly on Wednesdey as fading hopes of a U.S.-Iran breakthrough offset support from a relatively resilient Australian dollar.
• Markets are turning cautious ahead of the U.S. July inflation report, while renewed uncertainty over the Strait of Hormuz is keeping risk sentiment and commodity prices in focus.
• The latest developments have pushed Brent crude toward $90 a barrel and increased inflation concerns, potentially complicating the Federal Reserve's policy outlook.
•The immediate focus for currency markets is the U.S. July CPI report, due later Wednesday.
A Reuters poll expects headline inflation to rise 3.4% year-on-year, while core inflation is forecast at 2.5%.