Australian Dollar Hovers Near Multi-Week Lows
The Australian dollar hovered around $0.71, trading in a sideways range near multi-week lows as a stronger US dollar offset rising expectations of another RBA rate hike. In a podcast interview, RBA Assistant Governor Sarah Hunter confirmed the need for further rate hikes this year. She reiterated the central bank’s warnings that inflation has remained too high for too long, risking becoming embedded in price-setting behavior. The comments lifted market pricing for a 25-bp rate hike at the RBA’s September 29 meeting to 95%. All four major banks now also expect a move at next week’s meeting, with Commonwealth Bank of Australia and ANZ joining Westpac and NAB in calling for a hike, with ANZ expecting another increase in November. Attention now turns to Governor Michele Bullock’s remarks and a speech by RBA board member Iain Ross later today. Meanwhile, the greenback remained firm as hawkish remarks from Federal Reserve officials reinforced expectations for further interest rate hikes.
71, trading in a sideways range near multi-week lows as a stronger US dollar offset rising expectations of another RBA rate hike. In a podcast interview, RBA Assistant Governor Sarah Hunter confirmed the need for further rate hikes this year. She reiterated the central bank’s warnings that inflation has remained too high for too long, risking becoming embedded in price-setting behavior. The comments lifted market pricing for a 25-bp rate hike at the RBA’s September 29 meeting to 95%.
All four major banks now also expect a move at next week’s meeting, with Commonwealth Bank of Australia and ANZ joining Westpac and NAB in calling for a hike, with ANZ expecting another increase in November. Attention now turns to Governor Michele Bullock’s remarks and a speech by RBA board member Iain Ross later today. Meanwhile, the greenback remained firm as hawkish remarks from Federal Reserve officials reinforced expectations for further interest rate hikes.