AUD/USD jumps as hot CPI fuels RBA tightening bets

The Australian Dollar rallies over 0.80% against the US Dollar on Wednesday, courtesy of a red-hot inflation report, which increased speculation of further tightening by the Reserve Bank of Australia (RBA). At the time of writing, the AUD/USD trades at 0.7118 after bouncing off daily lows of 0.7057.

PLN: Dovish NBP and rate-cut debate – ING

ING’s Frantisek Taborsky reports that NBP Governor Glapinski and council member Litwiniuk signalled inflation near the 2.5% target and room for further easing, with rates potentially falling to 3.50%. Markets, however, price a lower 3.25% terminal rate.

HUF: MNB opens cautious rate‑cut cycle – Commerzbank

Commerzbank’s Tatha Ghose reports that Hungary’s MNB has started an easing cycle with a 25 bp cut to 6.25%, justified by improved inflation dynamics and stable markets.

Gold reclaims $5,200 on trade jitters and Fed cut bets

Gold prices rise over 1% on Wednesday amid uncertainty on US trade policies and expectations that the Federal Reserve (Fed) will ease policy through the rest of the year. At the time of writing, XAU/USD trades at $5,204 after bouncing off its worst levels at $5,121.

Fed’s Schmid: Politics do not enter Fed policy debates

Jeffrey Schmid, President of the Federal Reserve Bank of Kansas City, said on Wednesday that the Fed system has layers of independence and that politics do not enter Fed policy debates.