0450 GMT - The recent rally in AUD/USD has evaporated in the early stages of this holiday-shortened week, with the pair falling victim to weak Chinese PMI data released on Monday, says Tony Sycamore, market analyst at IG Australia. Risk aversion due to the emergence of a new low-cost artificial intelligence model by Chinese company DeepSeek that has raised questions about U.S. AI dominance and tech stock valuations is also a factor, he says. The more immediate driver of the AUD/USD will be Wednesday's CPI data for 4Q 2024, which will determine whether the Reserve Bank of Australia will cut interest rates in February for the first time since November 2020, or stay on hold at 4.35%, Sycamore adds. AUD/USD is at 0.6247, down from 0.6314 late Friday. (james.glynn@wsj.com; @JamesGlynnWSJ)
(END) Dow Jones Newswires
January 27, 2025 23:50 ET (04:50 GMT)
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