The Australian dollar strengthened broadly in Asian trading on Wednesday against a basket of global currencies, hitting its highest level in about a week versus the US dollar, following the release of hot inflation data from Australia.

The data showed renewed inflationary pressures on policymakers at the Reserve Bank of Australia, which lowered the likelihood of an interest rate cut at next week’s meeting.

Price Overview

• AUD/USD today: The Australian dollar rose 0.4% to 0.6623, the highest in about a week, up from the session’s opening at 0.6597, after touching a low of 0.6589.

• The Australian dollar ended Tuesday flat against the US dollar, after gaining 0.1% the previous day in a recovery move from a two-week low at 0.6575.

Australian Inflation

The Australian Bureau of Statistics reported Wednesday that the overall Consumer Price Index rose by 3.0% year-on-year in August, the fastest pace since July 2024, above market forecasts of 2.9%, compared to 2.8% in July.

The figures confirm that inflation has accelerated back out of the RBA’s 2%–3% medium-term target band, reducing the likelihood of an additional rate cut this year.

Views and Analysis

• Tony Sycamore, IG Markets: “Today’s inflation update suggests the RBA will maintain a cautious approach to its easing cycle. September is off the table, but November remains in play.”

• Russel Chesler, VanEck: “The recent uptick in inflation, combined with continued labor market strength, reinforces our view that another rate cut is unlikely before November.”

Australian Interest Rates

• Following the inflation data, market pricing for a 25 basis-point rate cut by the RBA in September dropped from 25% to just 5%.

• RBA Governor Michele Bullock said Monday that the Australian economy is in good shape, with inflation expected to return to the middle of the 2%–3% target range and the labor market close to full employment.

The Australian Bureau of Statistics reported on Wednesday that the annual Consumer Price Index rose by 3.0% in August, the fastest pace since July 2024. This exceeded both market expectations of a 2.9% increase and the prior reading of 2.8%.

The data highlights accelerating inflationary pressures on policymakers at the Reserve Bank of Australia, reducing the likelihood of an interest rate cut next week.

•This release is considered positive for the Australian dollar.

Gold prices rose on Tuesday to a new record high, supported by a weaker US dollar against most major currencies and markets assessing remarks from Federal Reserve Chair Jerome Powell.

In his speech at the Providence Chamber of Commerce in Rhode Island, Powell stated that the US economy faces risks from both rising inflation and a weakening labor market.

Powell added that current interest rates “are appropriate” to address both threats, noting that he does not see an urgent need for aggressive or rapid cuts. He commented: “The rising risks regarding employment have shifted the balance of risks in achieving our objectives. This stance of monetary policy, which I still view as moderately restrictive, leaves us well positioned to respond to any potential economic developments.”

He further explained that asset prices, including US equities, are “quite elevated” by many measures, but dismissed this as a current risk to financial stability.

Meanwhile, the US dollar index fell 0.1% to 97.2 points at 19:33 GMT, after touching a high of 97.4 and a low of 97.2.

On the trading side, spot gold climbed 1% to $3,811.80 an ounce at 19:33 GMT.

Crypto market rose on Tuesday, but the CoinMarketCap Fear & Greed Index held steady at 44, leaving it right on the line between fear and neutrality. This indicates that many traders remain cautious, waiting for clearer confirmation before re-entering the market.

Seasoned investors, however, often view such caution as a sign of significant upside potential ahead. Much of the focus is now on Ethereum, since ETH’s role as the largest altcoin often signals the next move for the broader market.

If Ethereum turns bullish and looks set to break above $5,000 in the coming weeks or months, it could mark a return of momentum to altcoins, with capital flowing into higher-risk tokens. That prospect is already pushing some traders toward small-cap projects with higher growth potential, such as Bitcoin Hyper (HYPER), which has already raised nearly $15 million in its presale with daily inflows of $200K–$300K.

Bulls eyeing $9,000

Current ETH forecasts are supported by rising institutional adoption. BitMine’s continuous accumulation strategy is being compared to Michael Saylor’s Bitcoin playbook, reinforcing demand pressure. Combined with higher on-chain activity and Ethereum’s deflationary token mechanics, fundamentals are tilting bullish. ETH also hit a record $9B in stablecoin inflows yesterday, another indicator of institutional participation.

CryptoElites highlighted that Ethereum has finally broken a key long-term resistance, calling it a “classic breakout and retest scenario.” Based on this, analysts see a path toward $5,000 and possibly $9,000 in 2025—more than doubling from current levels below $4,300. Donald Dean echoed this, citing a falling wedge breakout with targets at $5,766, $6,658, and $9,547, supported by volume shelf accumulation.

At $9,000, ETH’s market cap would expand by ~$500B, fueling capital rotation into smaller altcoins. Projects like HYPER are expected to capture outsized gains if that scenario unfolds.

ETH/USD building momentum above $4,600

Ethereum has continued its September rally, stabilizing near $4,639 after gaining more than 13% off its $4,070 low. Market cap now stands around $560B, with $27.9B in daily volumes—signaling strong conviction from both retail and institutional players.

Institutional inflows are being further boosted by US spot ETH ETFs. Since launch, they’ve attracted $11B, with BlackRock’s iShares Ethereum leading the way. Whale accumulation is also notable: wallets holding 10K–100K ETH added 6M tokens over summer, raising total holdings to 20.6M ETH.

Exchange balances are down to 18.8M ETH—lowest since 2016—while staked ETH hit a record 36.2M. This supply squeeze is amplifying price reactions to fresh demand.

Technically, ETH/USD is trading in an ascending channel, confirmed by a breakout above $4,450 and strong bullish engulfing candles. Key supports lie at $4,550 and $4,425 (aligned with the 50-day SMA), while resistance clusters around $4,760, $4,945, and $5,135. RSI cooling from 69 to 60 shows healthy consolidation without breaking structure.

Network strength backs the rally

Ethereum’s network fundamentals remain robust: daily transactions reached 1.7M, active addresses are at 800K, and smart contract calls exceeded 12M per day in August. Trading volumes also surged 12.3% to $43.4B in 24 hours, with On-Balance Volume showing accumulation ahead of the rally.

Long-term outlook: $15K in play?

If ETH secures a decisive breakout above $5,000, analysts suggest it could pave the way toward a long-term target near $15,000—driven by ETF demand, corporate treasury adoption, and Layer 2 scaling.