The Australian Dollar is holding steady around $0.67 amidst speculation of a future rate hike by the Reserve Bank of Australia. Concerns about persistent inflation and recent hawkish comments from RBA officials are contributing to this sentiment. Simultaneously, external factors such as a slightly weaker US Dollar and anticipation surrounding upcoming US inflation data are influencing the currency’s movements.
- RBA Deputy Governor Hauser indicated inflation remains “too high,” suggesting the easing cycle may be over.
- RBA Governor Bullock warned the next policy move could be a rate hike.
- Australian household spending rose 1% month-on-month in November, exceeding forecasts.
- ANZ-Indeed Australian Job Ads fell for the sixth consecutive month.
- The Australian Dollar is supported by a weaker US Dollar due to reports of a criminal investigation into Fed Chair Powell.
- Upcoming China’s Trade Balance data will be a major trigger for the Aussie dollar.
- The market anticipates US inflation data; hot figures are unlikely to weigh on Fed decisions, as officials are more concerned about weak job market conditions.
The Australian Dollar’s value is currently influenced by a combination of domestic and international factors. The potential for a rate hike by the RBA due to ongoing inflation concerns appears to be a primary driver. At the same time, global economic data releases and shifts in US monetary policy expectations also play a significant role in shaping its trajectory. China’s economic data, particularly trade balance figures, also has a considerable impact.