• AUD/USD attracts some buyers to 0.6648 on the weaker USD.
• Fed’s Waller said interest rates don’t have to go higher to help get inflation back to 2%.
• RBA Governor Bullock said the central bank has to be cautious when using rates to bring down inflation without raising unemployment.
• The Australian CPI, US GDP data will be closely monitored by traders.

The AUD/USD pair edges higher to the mid-0.6600s during the early Asian session on Wednesday. A softer USD, triggered by a less hawkish stance from the Federal Reserve (Fed), lends some support to the pair. At press time, AUD/USD is trading near 0.6648, up 0.05% for the day.

On Tuesday, the US CB Consumer Confidence climbed to 102.00 in November versus a downward revision to 99.1. Meanwhile, the Richmond Fed Manufacturing Index showed activity slowed in November, declining to -5.0 from 3.0 in the previous reading. The S&P/Case-Shiller Home Price Index grew 3.9% YoY in September, below the market consensus of 4.0%.

Fed Governor Christopher Waller stated that interest rates don’t have to go higher to help get inflation back to 2%. Waller added that he could see a point where the Fed might start lowering rates if inflation continues to ease over the next three to five months. This, in turn, exerts some selling pressure on the Greenback and acts as a tailwind for the AUD/USD pair.

On the Aussie front, Reserve Bank of Australia (RBA) Governor Michele Bullock said the central bank has to be cautious with using rates to bring down inflation without raising unemployment. Bullock emphasized the expectation of lowering inflation to under 3.0% in 2025.

Market players will focus on the Australian monthly CPI, which is expected to ease to 5.2% YoY in October from 5.6% in September. The stronger-than-expected data could support further upside in the AUD. Later on Wednesday, the US Gross Domestic Product Annualized for the third quarter (Q3) will be released. Traders will take cues from the data and find trading opportunities around the AUD/USD pair.