Australian Dollar gains as strong Job Ads, resurgent inflation signal hawkish RBA
AUD/USD rises after two days of losses, hovering around 0.7010 during the Asian hours on Tuesday. The Australian Dollar (AUD) gained ground following the release of positive employment data, which showed that ANZ–Indeed Job Ads increased by 2.0% month-over-month in July.
The Australian Dollar (AUD) strengthened recently as strong job advertisements and increasing inflation hinted at a hawkish stance from the Reserve Bank of Australia (RBA). AUD/USD rose to around 0.7010 in Asian trading hours on Tuesday, following a rebound from a 0.2% decline the previous month. ANZ–Indeed job advertisements increased by 2.0% month-over-month in July, signaling broad-based labor demand across states and industries.
This followed a 0.4% rise in the TD-MI Inflation Gauge month-on-month in July, after a dip in June. RBA Governor Michele Bullock stated that inflation remains too high and warned of potential further increases due to oil price fluctuations from the Iran conflict. Meanwhile, US Dollar (USD) faced easing geopolitical tensions and hopes for a US-Iran diplomatic breakthrough, weakening the USD and supporting the AUD.
The RBA influences the AUD by setting interest rates, which determines the levels in the economy. Higher interest rates attract foreign investment, strengthening the AUD. Australia's largest export, Iron Ore, also impacts the AUD's value; higher prices increase demand for the currency. If China's economy grows well, it purchases more Australian goods and services, boosting AUD demand. Conversely, a weaker Chinese economy could hamper Australia's export demand and weaken the AUD.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
