Australian dollar holds above $0.72 near four-month high
The Australian dollar held above $0.72 near a four-month high as expectations grew for another Reserve Bank rate hike. The US dollar stayed broadly weaker, with traders cautious ahead of Friday’s US CPI.
72, close to a four-month high, as expectations for another Reserve Bank of Australia rate hike continued to underpin the currency and the US dollar stayed broadly weaker. The greenback failed to hold a brief bounce after Friday’s strong US jobs report lifted bets on a US rate increase, while caution persisted ahead of Friday’s US CPI report, which could shape expectations for the Fed’s policy path. In Australia, strong GDP growth and inflation data have increased expectations that the Reserve Bank will raise rates again later this month. 85% have risen to 50%.
Ongoing tensions in the Middle East have raised concerns about broader inflationary pressures and the prospect that central banks could keep tightening policy.