Australian Dollar strengthens as RBA maintains hawkish stance
AUD/USD rises 0.20% on Friday to trade around 0.7125 at the time of writing. The Australian Dollar (AUD) benefits from hawkish comments by Reserve Bank of Australia (RBA) officials, who keep the door open to further monetary tightening to bring inflation sustainably back toward the target.
The Australian Dollar (AUD) strengthened by 0.20% on Friday, trading at around 0.7125 against the US Dollar (USD). Reserve Bank of Australia (RBA) officials' hawkish comments played a significant role in the AUD's rise, with officials signaling the possibility of further interest rate hikes to curb inflation. RBA Governor Michele Bullock stated that inflation was "too high," and recent developments indicated that some upside risks to prices were materializing, especially due to Middle Eastern tensions.
Deputy Governor Andrew Hauser echoed similar concerns, emphasizing the uncertainty surrounding whether the current tightening measures would be sufficient to bring inflation back to target within a reasonable timeframe. The Australian Dollar benefited from the RBA's cautious stance, while the US Dollar's potential rate hike also added to its appeal, causing AUD/USD to oscillate near the rising 100-period simple moving average and the underlying uptrend line.
The Relative Strength Index (RSI) at 56.9 indicated a mildly positive momentum, but the proximity to overhead levels suggested that buyers were yet to find a clear breakout trigger. Resistance levels were identified at 0.7140, the 200-period SMA at 0.7159, and a stronger cap at 0.7188, while support was found in the confluence of the rising trend-line and 100-period SMA around 0.7122, with 0.7075 acting as a deeper structural floor for a more significant pullback.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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