The Australian dollar rose in Asian trade on Wednesday against the US dollar after a short hiatus yesterday, with the pair heading towards four-month high and about to mark the second monthly profit in a row.

Earlier Sydney data showed inflationary pressures remained persistent on monetary policymakers, casting doubts on the odds of an Australian interest rate cut in May.

The Price

The AUD/USD pair rose 0.35% today to 0.6407, with a session-low at 0.6379.

Aussie lost 0.75% on Tuesday against the greenback on profit-taking away from a four-month high at 64.50 cents.

Monthly Trades

Across April, the aussie is up 2.5% so far against the US dollar, on track for the second monthly profit in a row.

The gains are boosted by short-covering near five-year lows, while the risk appetite improved in the markets as global trade tensions receded.

Australian Inflation

Australias consumer prices rose 2.4% y/y in March, above estimates of 2.3%, and same as the previous reading in February.

On a quarterly basis, consumer prices rose 0.9% in the first quarter, up from 0.2 % in the fourth quarter of last year.

Australian Rates

The odds of a 0.25% interest rate cut in May by the Reserve Bank of Australia fell to 95%.

The RBA held interest rates steady at 4.1% earlier this month but said May provides a good opportunity to review monetary policies.

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