Australian Dollar strengthens on hawkish RBA comments
AUD/USD extends its gains for the second successive day, trading around 0.7120 during the Asian hours on Friday. The currency pair is appreciating as the Australian Dollar (AUD) strengthens following hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock.
The Australian Dollar (AUD) strengthened for the second day in a row, reaching around 0.7120 against the US Dollar (USD). This increase in value was attributed to hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock, who expressed concerns over inflation and suggested another interest rate increase. Her remarks bolstered market expectations of a fourth rate hike this year at the RBA's meeting in late September.
Deputy Governor Andrew Hauser reiterated the Board's dedication to its inflation target, while analysts at UBS projected two more hikes, aiming for a terminal rate of 4.85%. However, strategists at UOB Group held a bearish medium-term outlook on the Australian Dollar, noting that the currency "could decline toward 0.7120" after breaking below that level and closing at 0.7087 the previous day.
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