Australian Dollar holds near 0.7060 as eyes shift to RBA’s Bullock
The Aussie Dollar holds steady at around 0.7061 after US inflation data weighed on the Greenback, which recovered some ground to finish Thursday’s session almost flat. The AUD/USD registers modest losses of 0.01%
The Australian Dollar remains near 0.7060 as market focus turns to the Reserve Bank of Australia's upcoming statement from Governor Michelle Bullock. Following US inflation data, which weighed on the Greenback, the AUD/USD slipped 0.01%. US data showed PPI below expectations and improved from June's print, while core PPI ticked lower as anticipated.
Initial Jobless Claims for the week ending August 8 rose to 209K, slightly above forecasts but close to the 4-week average, suggesting a solid labor market. Traders now anticipate a potential interest rate increase from the Fed by the end of 2026, while the probability of a September hike dropped to 30%, with a 70% chance of a hold.
In Australia, RBA Assistant Governor Christopher Kent indicated that inflation risks are on the upside, potentially prompting further rate hikes. The Australian economic calendar includes a speech from Governor Michelle Bullock on Friday, with the US market scheduled to release July Retail Sales and the University of Michigan Consumer Sentiment.
In technical analysis, AUD/USD is trading at 0.7062, exhibiting a bullish near-term bias while remaining above key support levels. Resistance is seen at 0.7277 and 0.7297, with a potential break above exposing higher trend resistance. Support is at 0.6955, with deeper declines potentially targeting the 0.6403 level.
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