The Australian Dollar is attempting to snap a three-day losing streak against the Greenback. Reserve Bank of Australia (RBA) Governor Lowe provided the Aussie Dollar with some ammunition following comments which lent on the hawkish side as he maintained the RBA is committed to the inflation fight, not ruling out further rate hikes.
Governor Lowe stated the Central Banks core prediction is for CPI inflation to be approximately 3¼ percent by the end of next year, and to be back within the 2-3% goal range by late 2025. The comments have seen AUDUSD hold the line just above the 0.6500 handle heading into the European open.
The Chinese recovery continues to negatively impact the Australian Dollar as evidenced by this week’s poor import and export numbers coinciding with renewed weakness in the Australian Dollar. There have been some positive developments however as China have lifted tariffs imposed on Australian Barley with the Asia-Pacific nation looking at the possibility of restriction being lifted in other sectors as well. The bigger concern in my view, however, remains the uneven recovery by China which continues to hamper the growth story in Australia and could have an impact on the possibility of further rate hikes from the RBA.
Governor Lowe stated the Central Banks core prediction is for CPI inflation to be approximately 3¼ percent by the end of next year, and to be back within the 2-3% goal range by late 2025. The comments have seen AUDUSD hold the line just above the 0.6500 handle heading into the European open.
The Chinese recovery continues to negatively impact the Australian Dollar as evidenced by this week’s poor import and export numbers coinciding with renewed weakness in the Australian Dollar. There have been some positive developments however as China have lifted tariffs imposed on Australian Barley with the Asia-Pacific nation looking at the possibility of restriction being lifted in other sectors as well. The bigger concern in my view, however, remains the uneven recovery by China which continues to hamper the growth story in Australia and could have an impact on the possibility of further rate hikes from the RBA.