Australian Dollar remains firm on firm RBA interest rate hike prospects
The Australian Dollar (AUD) is up 0.1% at around 0.7180 against the US Dollar (USD) during the European trading session on Thursday. The Aussie pair remains firm this week due to continued outperformance by the antipodean.
The Australian Dollar (AUD) strengthened by 0.1% to around 0.7180 against the US Dollar (USD) during Thursday's European trading session. This week, the AUD has been the strongest among major currencies, particularly against the Swiss Franc. On Thursday, Australia's Consumer Price Index (CPI) report for July revealed stronger-than-expected inflation data, with headline inflation rising from 3.8% year-over-year (YoY) in June to 3.5% YoY in July, while the trimmed mean inflation remained steady at 3.6% YoY.
Both measures surpassed market expectations, suggesting that the Reserve Bank of Australia (RBA) may consider another interest rate hike. This has led to a shift in market pricing, with AUD/USD testing resistance in the 0.7180-0.7200 range. However, OCBC Bank maintains that the RBA has likely completed its tightening cycle. Meanwhile, the US Dollar also gained ground, trading 0.1% higher to near 98.22 on the US Dollar Index (DXY).
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