Australian Dollar regains momentum as hawkish RBA meets softer US inflation
AUD/USD rebounds on Friday and trades around 0.7080 at the time of writing, gaining 0.31% on the day after falling as low as 0.7044 on Thursday.
The Australian Dollar (AUD) gained momentum on Friday, trading near 0.7080, after the Reserve Bank of Australia (RBA) Assistant Governor Chris Kent made hawkish remarks. Meanwhile, the US Dollar (USD) faced pressure due to softer inflation data from the United States. Kent stated that recent interest-rate increases are achieving their intended effects but warned of potential further tightening if new inflationary risks arise.
This hawkish sentiment from the Australian central bank, combined with softer US inflation data, bolstered the AUD. The US Dollar, meanwhile, struggled to regroup after lower-than-expected inflation figures decreased expectations of a Federal Reserve (Fed) interest rate hike in September. The pair now awaits key data releases, such as US Retail Sales and the University of Michigan Consumer Sentiment Index, which could provide new direction for AUD/USD as the week progresses.
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