Australian Dollar Stays Near 5-Week High
The Australian dollar held above $0.70, trading at almost a five-week high as hawkish Reserve Bank of Australia (RBA) signals reinforced expectations of another interest rate hike in November. RBA Assistant Governor Sarah Hunter said the central bank had not yet done enough to bring inflation under control, in a television interview. Her remarks reinforced expectations of a restrictive monetary stance following four rate hikes earlier this year, keeping markets focused on the November 3 policy meeting. She added that higher oil prices linked to the US-Iran war are becoming embedded in some supply chains, with more of that effect expected. Last week, Deputy Governor Andrew Hauser also warned the inflation outlook is materially worse than the central bank assessed in August. Attention now turns to Wednesday’s Q3 inflation report, which could strengthen or temper expectations for further tightening, after August CPI was still above the RBA's 2-3% target range.
The Australian dollar held above $0.70, trading at almost a five-week high as hawkish Reserve Bank of Australia (RBA) signals reinforced expectations of another interest rate hike in November. RBA Assistant Governor Sarah Hunter said the central bank had not yet done enough to bring inflation under control, in a television interview. Her remarks reinforced expectations of a restrictive monetary stance following four rate hikes earlier this year, keeping markets focused on the November 3 policy meeting. She added that higher oil prices linked to the US-Iran war are becoming embedded in some supply chains, with more of that effect expected.
Last week, Deputy Governor Andrew Hauser also warned the inflation outlook is materially worse than the central bank assessed in August. Attention now turns to Wednesday’s Q3 inflation report, which could strengthen or temper expectations for further tightening, after August CPI was still above the RBA's 2-3% target range.