Australian Dollar Trades Near Multi-Month Low
The Australian dollar rose above $0.68 but remained near multi-month lows, as a stronger US dollar offset support from hawkish remarks by RBA officials, who continued to flag persistent inflationary pressures. Reserve Bank of Australia Assistant Governor Sarah Hunter said the AI investment boom could add to near-term inflation by driving up demand for data centers and energy. Earlier, Deputy Governor Hauser warned that weakening public confidence in the RBA's ability to control inflation could require more aggressive rate increases. The central bank lifted rates last week for a fifth time this year to an 18-year high of 4.85%, but the decision was split 6—3, with three policymakers favoring no change. Meanwhile, the greenback strengthened after US employment data significantly exceeded expectations, lifting bets on a December Fed rate hike to around 79% from 71% a week earlier. The Aussie also faced pressure from concerns over elevated AI stock valuations and weaker risk appetite.
The Australian dollar rose above $0.68 but remained near multi-month lows, as a stronger US dollar offset support from hawkish remarks by RBA officials, who continued to flag persistent inflationary pressures. Reserve Bank of Australia Assistant Governor Sarah Hunter said the AI investment boom could add to near-term inflation by driving up demand for data centers and energy. Earlier, Deputy Governor Hauser warned that weakening public confidence in the RBA's ability to control inflation could require more aggressive rate increases.
The central bank lifted rates last week for a fifth time this year to an 18-year high of 4.85%, but the decision was split 6—3, with three policymakers favoring no change. Meanwhile, the greenback strengthened after US employment data significantly exceeded expectations, lifting bets on a December Fed rate hike to around 79% from 71% a week earlier. The Aussie also faced pressure from concerns over elevated AI stock valuations and weaker risk appetite.