Aussie Dollar Subdued Despite RBA Hike
The Australian dollar traded around $0.70, staying near multi-month lows despite the central bank’s fourth interest rate hike this year. In a unanimous decision, the Reserve Bank of Australia raised its cash rate by 25 basis points to 4.60%, the highest level since 2011, citing persistent inflationary pressures and higher global energy prices stoked by the Middle East conflict. The central bank has now raised rates by a total of 100 basis points this year, but the September move has already been largely priced into markets, limiting its immediate support for the currency as investors focused on the outlook for further tightening. The Aussie remained under pressure from a stronger US dollar and higher Treasury yields, as markets continued to price further Federal Reserve tightening. Attention now turns to Australia’s August inflation data due on Wednesday after a stronger-than-expected core inflation reading in July reinforced concerns about persistent price pressures.
70, staying near multi-month lows despite the central bank’s fourth interest rate hike this year. 60%, the highest level since 2011, citing persistent inflationary pressures and higher global energy prices stoked by the Middle East conflict. The central bank has now raised rates by a total of 100 basis points this year, but the September move has already been largely priced into markets, limiting its immediate support for the currency as investors focused on the outlook for further tightening. The Aussie remained under pressure from a stronger US dollar and higher Treasury yields, as markets continued to price further Federal Reserve tightening.
Attention now turns to Australia’s August inflation data due on Wednesday after a stronger-than-expected core inflation reading in July reinforced concerns about persistent price pressures.