Aussie Extends Decline to Near 2-Week Low
The Australian dollar fell to around $0.71, extending its decline from the previous week to reach a nearly two-week low as hotter-than-expected US inflation data strengthened the case for a Federal Reserve rate hike. After the data release, traders ramped up wagers to 86% that the US Federal Reserve will raise rates at its meeting next week, while also pricing in another hike later in the year, boosting the US dollar. In Australia, hawkish comments from the Reserve Bank, along with rising oil prices, have pushed markets to price in a 90% chance of a rate hike later this month. RBA Assistant Governor Sarah Hunter said last week that the central bank may need to raise rates again if inflation proves more persistent than expected. Meanwhile, Brent crude continued to rise above $100 a barrel after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.
71, extending its decline from the previous week to reach a nearly two-week low as hotter-than-expected US inflation data strengthened the case for a Federal Reserve rate hike. After the data release, traders ramped up wagers to 86% that the US Federal Reserve will raise rates at its meeting next week, while also pricing in another hike later in the year, boosting the US dollar. In Australia, hawkish comments from the Reserve Bank, along with rising oil prices, have pushed markets to price in a 90% chance of a rate hike later this month.
RBA Assistant Governor Sarah Hunter said last week that the central bank may need to raise rates again if inflation proves more persistent than expected. Meanwhile, Brent crude continued to rise above $100 a barrel after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.