The Australian Dollar has shown resilience, rebounding against the US Dollar due to a confluence of factors, including anticipated domestic rate hikes, positive household spending data, and a weaker greenback influenced by external events like reports of an investigation into the Fed Chair.
- The Australian dollar rose toward $0.67, ending a three-session losing streak.
- Markets anticipate a Reserve Bank cash rate hike later this year.
- 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.
- Household spending rose 1% month-on-month in November, surpassing forecasts.
- ANZ-Indeed Australian Job Ads fell 0.5% month-on-month in November, the sixth consecutive decline.
- The Aussie was supported by a weaker US Dollar due to reports of a criminal investigation into Fed Chair Powell.
- US nonfarm payrolls fueled expectations of further US policy easing.
- AUD/USD returned to levels above 0.6700 after bouncing near 0.6670.
- Political pressure on the Fed has sent the US Dollar tumbling.
The Australian Dollar is showing strength, driven by both domestic factors and external pressures on the US Dollar. Positive economic indicators within Australia, coupled with hawkish signals from the Reserve Bank, are supporting the currency. At the same time, uncertainty surrounding the US Federal Reserve is weakening the US Dollar, further bolstering the Australian Dollar’s position.